Market wrap: NIFTY50 posts worst day in over nine months; SENSEX sinks 1,066 points as geopolitical tensions rattle markets

The Indian equity benchmarks nosedived on Tuesday, January 20. The NIFTY50 index posted its worst day in over nine months as the index dropped as much as 414 points or 1.6% to hit an intraday low of 25,171 and the 30-share SENSEX plunged as much as 1,236 points to hit an intraday low of 82,010.58 as rising geopolitical tensions across the world rattled investor sentiment for risk assets like equities, while precious metals like gold and silver surged to record highs.

The SENSEX fell 1,066 points to close at 82,180 and NIFTY50 index tumbled 353 points to close at 25,232, its lowest since October 13, 2024, data from the NSE showed.

Equity markets across the world were trading with deep cuts after US President Donald Trump threatened to slap a 10% extra tariff on imports from eight European countries, provoking a backlash from important trading partners that invest heavily in the US.

Markets across Europe were trading lower, with France's CAC40 index falling 1.01%, Germany's DAX declining 1.13% and the United Kingdom's FTSE100 index dropping 1.13%.

Trump threatened to implement a wave of increasing tariffs from February 1 on eight European countries until the US is allowed to buy Greenland, fuelling fears of a renewed trade war.

Asian markets closed lower as Japan's Nikkei dropped 1.03%, China's Shanghai Composite declined 0.01% and Hong Kong's Hang Seng fell 0.32%.

On the flipside, safe-haven gold and silver surged to new peaks, with gold trading above $4,700 per ounce for the first time.

Back home, selling pressure was broad-based as all the major sector gauges compiled by the National Stock Exchange ended lower led by the NIFTY Realty index's over 5% fall. NIFTY Healthcare, Oil & Gas, Consumer Durables, Metal, Auto, FMCG, IT, Financial Services and Pharma indices also dropped between 1.5% and 2.5%.

Broader markets massively underperformed their larger peers as NIFTY Midcap 100 index fell 2.62%. As many as 97 shares ended lower in the index.

NIFTY Smallcap 100 index fell 2.85%, NIFTY 500 index plunged 1.83% and NIFTY NEXT50 index tanked 2.3%.

Adani Enterprises was the top loser in the NIFTY50 index, plunging 3.96% to close at ₹2,050 apiece. Meanwhile, Bajaj Finance, Jio Financial Services, Eternal, Coal India, Sun Pharma, Apollo Hospitals, InterGlobe Aviation and Bajaj Finserv also fell between 2.85% and 3.89%.

On the other hand, Dr Reddy's Labs, HDFC Bank and Tata Consumer Products were the only gainers in the NIFTY50 index.

The overall market breadth was extremely bearish as 3,503 shares ended lower while 780 closed higher on the BSE.