Daijiworld Media Network – Mumbai
Mumbai, Jan 20: Indian equity markets witnessed a sharp selloff on Tuesday amid escalating global trade tensions and sustained foreign capital outflows, eroding nearly Rs 10 lakh crore of investor wealth in a single session.
The benchmark NSE Nifty slipped to a three-month low, registering its biggest single-day fall since April 2025. The index ended 353 points or 1.38 per cent lower at 25,232.50, while the BSE Sensex plunged 1,066 points or 1.28 per cent to close at 82,180.
Investor sentiment weakened globally following concerns over US President Donald Trump’s proposed tariffs against countries opposing his bid to control Greenland and strong resistance from Europe. Fears of renewed global trade disruptions prompted heavy selling in equities.
The market rout saw 48 of the 50 Nifty stocks closing in the red. The total market capitalisation of BSE-listed companies dropped sharply to Rs 455.76 lakh crore from Rs 465.19 lakh crore, wiping out nearly Rs 10 lakh crore in a day.
Vinod Nair, Head of Research at Geojit Investments, said domestic markets remained cautious ahead of the US Supreme Court’s ruling on Trump-era tariffs, adding that uncertainty around US trade policy has prolonged market consolidation. He noted that continued foreign institutional investor (FII) outflows, rising US and Japanese bond yields, and a weakening rupee further dented investor confidence.
The rupee closed at 90.98 against the US dollar, marginally weaker than Monday’s 90.91. Broader markets underperformed, with the Nifty Midcap 100 and Nifty Smallcap 100 indices tumbling up to 3 per cent each.
Ashika Institutional Equities said sustained selling by foreign portfolio investors intensified the decline. Heightened global uncertainty has pushed investors towards safe-haven assets, with gold and silver trading at record highs, it added.
FIIs sold equities worth Rs 2,192 crore on Tuesday, marking the 11th straight session of net outflows this month. Total FII selling has reached Rs 22,529 crore so far in January, with net selling seen on all but one trading day.
Markets have had a turbulent start to 2026 amid US President Donald Trump’s unpredictable foreign and tariff policies. His actions, including threats of steep tariffs on European nations, moves against Iran, the arrest of Venezuela’s President Nicolas Maduro, and warnings of 500 per cent tariffs on countries buying Russian oil, have intensified geopolitical tensions.
Experts said these developments have pushed investors away from riskier assets, particularly emerging markets like India. Trump’s threat of imposing 500 per cent tariffs on buyers of Russian oil has raised concerns for India, the world’s second-largest importer of discounted Russian crude, while existing US tariffs of up to 50 per cent on Indian goods continue to hurt exporters.
Adding to the pressure, weak Q3FY26 earnings from major blue-chip companies such as HDFC Bank, Reliance Industries, ICICI Bank and leading IT firms have further dampened market sentiment.