Markets opened on a weak note on Tuesday morning, extending losses from the previous session as concerns over potential US tariffs on Europe and geopolitical uncertainties continued to dampen investor sentiment. The opened at 25,580.30 against the previous close of 25,585.50 and fell to 25,457.85 by 9.50 am, down 127.65 points or 0.50 per cent. The benchmark opened at 83,207.38 compared to its previous close of 83,246.18 and was trading at 82,904.23, down 341.95 points or 0.41 per cent.
Monday’s session had already seen sharp corrections, with the Nifty ending 109 points lower and the Sensex shedding 324 points. The Reality Index emerged as the worst performer, losing over 2 per cent, while selective stocks attracted buying interest despite weak overall market sentiment.
“The volatility in the market is likely to continue in the near-term till some clarity emerges regarding the US-Europe standoff on Greenland tariffs. Since both sides have hardened their positions, the uncertainty will continue for some time,” said Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited. He added that “a new development is likely today if the US Supreme Court ruling on Trump tariffs goes against President Trump.”
Foreign Institutional Investors continued their selling spree, offloading Indian equities worth approximately ₹3,263 crore on 19th January, while Domestic Institutional Investors provided support by purchasing around ₹4,234 crore. For January so far, FIIs have been net sellers of approximately ₹26,000 crore, with DIIs countering with net purchases of around ₹34,000 crore.
Among the top gainers on the Nifty 50, Kotak Mahindra Bank led with a gain of 0.73 per cent, trading at ₹430.00. Hindustan Unilever rose 0.58 per cent to ₹2,427.80, while gained 0.48 per cent to ₹345.00. State Bank of India advanced 0.43 per cent to ₹1,042.90, and ICICI Bank was up 0.25 per cent at ₹1,384.00.
On the losing side, Eicher Motors was the worst performer, plunging 2.90 per cent to ₹273.20. Bajaj Finance declined 2.61 per cent to ₹944.15, while Trent fell 1.87 per cent to ₹3,872.00. Jio Financial Services dropped 1.83 per cent to ₹270.60, and InterGlobe Aviation shed 1.79 per cent to ₹4,853.00.
“Nifty slipped in Monday’s trade, tracking weak global cues as renewed fears over possible US tariffs on Europe and retaliation risks kept markets on edge,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd. He noted that “sentiment remained fragile amid uncertainty over President Donald Trump’s tariff threats linked to Greenland and ahead of the US Supreme Court’s tariff policy decision, with sustained FII selling adding to the pressure.”
Shrikant Chouhan, Head of Equity Research at Kotak Securities, highlighted technical levels, stating that “the current market texture is weak, but a fresh selloff is possible only if 25,450/82,800 is dismissed. Below this level, the market could slip to 25,350-25,250/82,500-82,200.”
“From the fundamental perspective, there are good news as well as not so good news for the market. The good news is that the IMF has raised India’s FY 26 GDP growth rate to 7.3 per cent confirming the robust performance of the economy despite many headwinds,” Vijayakumar added.
In commodity markets, Brent crude oil futures traded at $64.02, up 0.13 per cent, while WTI crude was at $59.33, down 0.17 per cent.