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Post-Market Report: Sensex Plummets 1,066 Points Amid Global Trade War Fears and FII Selling

Published: 2026-01-20 17:00 IST | Category: Markets | Author: Abhi

Post-Market Report: Sensex Plummets 1,066 Points Amid Global Trade War Fears and FII Selling

Market Performance Today

Dalal Street endured a brutal session on Tuesday, with the BSE Sensex and NSE Nifty 50 both plunging more than 1.2% by the closing bell. The BSE Sensex ended the day at 82,180.47, down 1,065.71 points or 1.28%. Meanwhile, the Nifty 50 settled at 25,232.50, losing 353 points or 1.38%. The market capitalization of BSE-listed firms saw a staggering wipeout of nearly ₹10 lakh crore as investor sentiment turned sharply bearish amid global and domestic headwinds.

Top Movers (Sectors and Stocks)

The bloodbath was visible across the board, with almost all sectoral indices ending in the red. Defensive stocks and a few heavyweights provided the only minor pockets of resilience.

Top Gainers:

  • HDFC Bank (The sole gainer in the Sensex pack)
  • Dr. Reddy’s Laboratories
  • Tata Consumer Products
  • Hindustan Unilever (HUL)
  • State Bank of India (SBI)

Top Losers:

  • Eternal (Down 4.0%)
  • Bajaj Finance (Down 3.88%)
  • Sun Pharmaceutical Industries
  • InterGlobe Aviation (IndiGo)
  • Trent Ltd
  • Adani Enterprises

From a sectoral perspective, the Nifty Realty index was the worst performer, crashing over 5%. Other major laggards included Nifty Auto (down 2.56%) and Nifty IT (down 2.06%), the latter being dragged down by disappointing outlooks from major tech firms.

Key Drivers of Today's Market

Several critical factors converged to trigger the sharp decline in the Indian markets:

  • Global Trade Tensions: Fresh threats from the U.S. administration to impose additional tariffs on European nations—linked to disputes over Greenland's resources—sparked widespread risk aversion globally.
  • Persistent FII Outflows: Foreign Institutional Investors (FIIs) continued their aggressive selling streak, offloading thousands of crores in Indian equities, further straining market liquidity.
  • Rupee at Record Low: The Indian rupee fell 7 paise to settle at an all-time low of 90.97 against the U.S. dollar, adding pressure on imported inflation and corporate margins.
  • Subdued Earnings Sentiment: Mixed results from the ongoing Q3 earnings season, particularly in the IT and manufacturing sectors, failed to provide any positive triggers for the market.
  • Technical Breakdown: The Nifty 50 breached key support levels, including its 200-day moving average (DMA) intraday, triggering technical sell-offs.

Broader Market Performance

The carnage was even more pronounced in the broader market, as small-cap and mid-cap stocks faced intense heat. The Nifty Midcap 100 index dropped 2.62%, while the Nifty Smallcap 100 index plunged 2.85%. Market breadth was overwhelmingly negative, with over 3,400 stocks on the BSE ending in the red compared to only a few hundred gainers. The India VIX, often referred to as the "fear gauge," spiked by nearly 8%, signaling heightened volatility expectations among investors in the near term.

TAGS: Post-Market, Stock Market, Nifty, Sensex, Market Analysis

Tags: Post-Market Stock Market Nifty Sensex Market Analysis

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