Indian benchmarks, while extending losses, saw sharp cuts in the later hours of trade. The Nifty 50 closed the session 353 points or 1.38% to 25,232. The BSE Sensex dipped 1,066 points or 1.28% to close at 82,180.
The midcap stocks underperformed key indices. The Nifty midcap 100 plunged 1,562 points or 2.62% to end the trade at 58,085. The Nifty Bank was in line with the benchmarks, dropping 487 points or 0.81% to finish at 59,404.
“Domestic markets remained cautious ahead of the U.S. Supreme Court’s ruling on Trump-era tariffs, with renewed uncertainty over U.S. trade policy prolonging the recent consolidation. Continued FII outflows, rising U.S. and Japanese bond yields, and a weakening rupee weighed on investor confidence,” said Vinod Nair, Head of Research at Geojit Investments.
“Mid- and small-cap stocks underperformed the benchmarks, and sentiment was broadly negative across all sectors. In the near term, market sentiment will hinge on the earnings season, while geopolitical developments and global trade conditions remain important influences,” he added.
Markets at 1:45 PM: The domestic equity markets were trading lower during the session, with the Sensex down over 600 points, or 0.76%, at 82,655.03, while the Nifty slipped 214.90 points, or 0.84%, to trade at 25,370.60.
From the Sensex pack at this hour, HDFC Bank was up 0.49%, ICICI Bank gained 0.35%, and Hindustan Unilever edged higher by 0.21%. On the downside, Bajaj Finance slipped 2.70%, Trent declined 2.76%, Sun Pharmaceutical Industries fell 3.03%, while Eternal dropped 3.77% during the session.
Markets at 12:00 PM: In the afternoon trade, the domestic equity benchmarks were trading lower as market sentiment remained cautious. The BSE Sensex was down 408.39 points, or 0.49%, trading at 82,837.79, while the NSE Nifty 50 slipped 152.60 points, or 0.6%, to trade at 25,432.90.
Markets at 9:45 AM: In early trade, the domestic equity benchmarks were trading lower. The BSE Sensex slipped 319.44 points, or 0.38%, to trade at 82,926.74, while the NSE Nifty 50 declined 124.80 points, or 0.49%, to 25,460.70.
Markets today at open, January 20: Benchmark indices Sensex and Nifty opened flat on Tuesday. The Sensex slipped 0.05% to open at 83,207, while the Nifty began the session at 25,580, down 0.02%.
“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. A new development is likely today if the US Supreme Court ruling on Trump tariffs goes against President Trump. But there is no certainty on whether the ruling will happen today. If it does, the ruling might change the scenario completely overnight,” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments.
“From the fundamental perspective, there is 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%, confirming the robust performance of the economy despite many headwinds. An area of concern is that early Q3 results do not indicate a recovery in earnings growth. This is likely to change when the results of auto companies start flowing in, since this sector has done well in Q3, and it is heartening that the growth momentum is continuing in the sector,” he added.
Key global and domestic cues to watch on January 20, 2025
GIFT Nifty started Tuesday on a positive note, rising about 0.15% to 25,605 in early trade. Investors are expected to watch overseas markets closely, as trends in Asia and the United States could influence sentiment during the session. Currency movements and commodity prices are also likely to draw attention as traders assess the global market environment.
Asian Markets
Asia-Pacific markets were mostly weak in early trade. Japan’s Nikkei 225 slipped about 0.7%, and the Topix index fell 0.52%. In South Korea, the Kospi declined 0.41%, while the Kosdaq was largely unchanged. Australia’s S&P/ASX 200 also moved lower, losing around 0.46%.
What kept Asian markets subdued
Asian markets remained under pressure as investors stayed cautious on global uncertainty. Fresh concerns around possible US tariff hikes on some European countries raised worries about trade tensions. At the same time, uncertainty in Japan increased after the prime minister announced plans to dissolve parliament and call an early election.
Trump’s Greenland demand
US president Trump announced on Truth Social that imports from eight NATO countries could face tariffs starting at 10% from February 1, rising to 25% by June 1, unless a deal is made to acquire Greenland. The move was criticised by European leaders as “unacceptable.”
Gold, silver hit record highs
In the international market, gold and silver prices hit another record high. Trump’s Greenland tariff sparked safe haven rally. Gold was trading at $4,673.70 per ounce on Comex.
Gold prices in India edged slightly higher. On the MCX, February 5, 2026, gold futures were trading at Rs 1,45,757 per 10 grams in the latest update.
US Futures
US stock futures pointed to a weaker start on Wall Street. This came as Trump raised the issue over Greenland.
US markets
US markets remained closed on Monday, January 19, 2026, as the country observed Martin Luther King Jr. Day. Trading on the New York Stock Exchange and Nasdaq, as well as bond markets were shut.
Trump’s Davos speech in focus
The 2026 World Economic Forum Annual Meeting started in Davos on January 19, bringing together global leaders under the theme “A Spirit of Dialogue.” Investors are keeping an eye on the event, especially with U.S. President Donald Trump attending alongside other heads of state and top corporate executives. The forum will run until January 23.
US dollar
The US Dollar Index (DXY), which measures the dollar’s value against a basket of six foreign currencies, was trading 0.08% higher at 99.13 on Tuesday morning. The index evaluates the strength or weakness of the US dollar in comparison to major currencies. The basket contains currencies such as the British Pound, Euro, Swedish Krona, Japanese Yen, Swiss Franc, etc. The rupee appreciated 0.04% to close at 90.91 to the dollar on January 19.
Crude Oil
Oil prices were marginally higher in early trade on Tuesday. US crude, West Texas Intermediate, was trading around $59.44 a barrel, up about 0.02%, while Brent crude was near $64.16 a barrel, rising roughly 0.16%.
FII, DII data
Foreign Institutional Investors sold Indian shares worth Rs 3,263 crore, while Domestic Institutional Investors bought stocks worth about Rs 4,234 crore, according to provisional exchange data on January 19.
Top sectors in last trading session
Among sectors, transport stocks gained 3.96%, showing the strongest move. Non-ferrous metal stocks rose 1.72%, while electric equipment shares were up 1.26% in the previous trading session.
Best and worst performing business group in last trading session
Among corporate groups, Hero Group saw its market capitalisation rise 1.9%, while Shriram Group was up 1.33%. Essar Group also recorded a gain of 1.29%. On the other hand, Lakshmi Group Coimbatore saw a decline of 3.99%, while Pennar Group fell 5.03%.