The Indian benchmark indices extended their losses on Wednesday due to ongoing global risk-off sentiment, foreign fund outflows, and mixed earnings cues. As of 9.30 am, the Sensex dropped by 168 points (0.20%) to 82,012, while the Nifty fell by 28 points (0.11%) to 25,204. The Nifty Midcap 100 and Nifty Smallcap 100 also experienced declines in line with the benchmark indices.
Sector-wise, the market saw mixed performance, with Nifty metal and pharma sectors showing gains of 0.83% and 0.86% respectively. Conversely, IT and chemicals sectors were among the major losers, declining by 0.81% and 1.21% respectively. Market analysts noted that immediate support levels are around 25,050–25,100, with resistance levels near 25,350–25,400.
US President Donald Trump’s threat of imposing 200% tariffs on French wine and Champagne has added to market uncertainties. Analysts suggest that the recent stock selloff in the US markets, triggered by Trump’s statements, reflects investors’ cautious approach towards risks. The situation is further complicated by Greenland Prime Minister Jens-Frederik Nielsen’s warning of a potential military invasion from the US.
In Asian markets, China’s Shanghai index and Shenzhen index showed gains, while Japan’s Nikkei and Hong Kong’s Hang Seng Index experienced declines. South Korea’s Kospi also saw a slight decrease. The US markets closed in the red, with Nasdaq, S&P 500, and Dow Jones all registering losses in the last trading session. Foreign institutional investors (FIIs) sold net equities worth Rs 2,938 crore on January 20, while domestic institutional investors (DIIs) bought equities worth Rs 3,666 crore.
