On Tuesday, January 21, 2025, Indian benchmark indices faced significant volatility. By 2:30 PM, the BSE Sensex was down over 800 points, or 1%, trading at 76,250, and the Nifty 50 was at 23,147, lower by 197 points, or 1%. The broader market was also under pressure, with the Nifty Midcap 100 and Smallcap 100 falling by 1.68% and 1.70%, respectively.
Sectorally, FMCG was the sole gainer with a 0.34% rise, while Consumer Durables and Realty were the worst performers, losing 3.59% and 3.04%, respectively. Among stocks, UltraTech Cement and Apollo Hospitals were top gainers on the indices, while Zomato, Adani Ports, and ICICI Bank faced significant losses.
The India VIX index rose 5.92% to 17.39, reflecting heightened market volatility. Global cues also impacted sentiment. Asian markets exhibited mixed performance as investors reacted to the inauguration of US President Donald Trump’s second term. His speech emphasized emergency declarations on energy and immigration and announced expansive foreign policy measures, but avoided major tariff announcements, which initially reassured global markets.
In the commodities space, WTI crude oil prices fell over $1, trading at $76.37 per barrel as Trump's energy plan hinted at maximizing domestic production. Additionally, the dollar index declined 1.2%, while US Treasury yields eased, reflecting a dovish sentiment on US monetary policy.
Overall, the market sentiment remains cautious, with domestic factors like corporate earnings and global events such as US policy direction shaping the outlook.
