Indian equities witnessed a sharp sell-off on weekly expiry, rattled by escalating global tariff tensions sparked by fresh remarks from U.S. President Donald Trump. The sell-off was broad-based, with no sector managing to close in the green, reflecting a clear risk-off sentiment across Dalal Street.
📊 Benchmark Indices at 3:30 PM
- NIFTY 50: 🔻 353 points (-1.38%) → 25,233
- SENSEX: 🔻 1,066 points → 82,180
- BANK NIFTY: 🔻 487 points (-0.81%) → 59,404
📌 Nifty closed at its lowest level in the last three months, highlighting rising investor caution and growing volatility.
🌍 Global & Macro Overhang: What’s Spooking the Markets?
Global markets remain on edge amid fears of European retaliation, raising concerns of a renewed global trade war. The uncertainty has spilled over into emerging markets, including India.
🔎 The 3 Key Culprits Behind Nifty’s Weakness:
1️⃣ Relentless FII Selling
- January 2026 FII net outflows: ₹29,315 crore
➡️ Persistent selling pressure from foreign investors continues to weigh heavily on Indian equities.
2️⃣ US–India Trade Tensions
- President Trump warned of swift tariff hikes if India continues importing Russian oil, escalating geopolitical and trade-related anxieties.
3️⃣ Trump’s Tariffs on Europe
- Fresh tariffs imposed on European nations opposing U.S. control over Greenland, reigniting global trade war fears.
📌 Adding to the uncertainty, markets are awaiting the U.S. Supreme Court’s verdict, after it deferred its ruling on challenges to Trump’s global tariff policy.
📉 Market Statistics Snapshot
- Advance–Decline Ratio: 03 : 47 ⚠️ (Strongly Bearish)
- India VIX: 12.73 🔺 (+7.61%)
- NIFTY PCR (27 Jan): 0.59 (Bearish bias)
- USD/INR Futures (Jan): 90.99 (Flat)
➡️ Volatility is rising, signaling nervousness among traders and investors.
🧭 Sectoral Performance
❌ Top Performing Sectors
- None
🔻 Major Sectoral Losers
- NIFTY REALTY: -5.04%
- NIFTY CONSUMER DURABLES: -2.80%
- NIFTY AUTO: -2.48%
📌 Heavy selling across rate-sensitive and discretionary sectors reflects growth concerns.
📊 Index Breakdown – Technical View
🔴 NIFTY 50
- Violated 21 DMA (25,944), 50 DMA (25,958) & 100 DMA (25,580)
- 200 DMA at 25,114 now emerges as a critical make-or-break support
🔴 BANK NIFTY
- Closed well below the psychological 60,000 mark
- 📌 Noteworthy: Just last week, it touched an all-time high of 60,437
🔴 Broader Markets
- Nifty Midcap: -2.73%
- Nifty Smallcap: -2.85%
➡️ Clear risk-off mode in broader markets.
🔍 Stocks in Spotlight
1️⃣ ITC Hotels 🔻 3.06% (₹179.60)
Despite reporting a 9.4% YoY rise in Q3FY26 net profit to ₹235.13 crore, the stock witnessed profit-booking after a sharp 77% QoQ jump.
2️⃣ Ola Electric 🔻 8.87% (₹32.56)
Shares plunged after CFO Harish Abichandani resigned.
➡️ Deepak Rastogi appointed as the new CFO.
3️⃣ Hindustan Petroleum (HPCL) 🔻 3.22% (₹438.60)
Stock declined after announcing a $3 billion LNG supply deal with ADNOC Gas, making it the UAE’s largest LNG customer.
4️⃣ Lodha Developers 🔻 6.20% (₹979.30)
Corrected despite signing an MoU with the Maharashtra government to invest ₹1 trillion in a 2.5 GW data centre park.
🟢 Bulls & 🔴 Bears of the Day
🟢 Bulls
- DR REDDY’S (+0.46%)
- TATA CONSUMER (+0.28%)
- HDFC BANK (+0.28%)
🔴 Bears
- ADANI ENT (-3.96%)
- BAJAJ FINANCE (-3.89%)
- JIO FIN (-3.72%)
- COAL INDIA (-3.29%)
- APOLLO HOSP (-3.15%)
📌 52-Week Action
🟢 Fresh 52-Week High
- SBIN: CMP ₹1,034 | High ₹1,052
🔴 52-Week Lows
- ABFRL, BATA INDIA, GODREJ PROPERTIES, IEX, ENRIN
🔮 Market Outlook: What to Expect Next?
Until tariff-related headlines fade, Nifty is likely to remain under pressure. Persistent FII selling and global uncertainty continue to favor the bears.
📌 For a Sustainable Recovery:
- FIIs must return as net buyers
- Global trade rhetoric needs to cool off
⚠️ Key Technical Levels to Watch
- Crucial Support: 25,114 (200 DMA)
- Immediate Resistance: 25,501 (Closing basis)
➡️ For now, bears are clearly in control.
📈 All About NIFTY – Technical Dashboard
- CMP: 25,233
- Trend: Negative
- Support: 25,114 / 24,851
- Resistance: 25,501 / 25,751
- Range: 25,122 – 25,311
- 21 DMA: 25,944
- 50 DMA: 25,958
- 200 DMA: 25,114
💡 Stock Ideas (Educational View)
🟢 Bullish – Short Term
- SBIN
- HINDZINC
- TATA STEEL
🟢 Bullish – Long Term
- MANAPPURAM
- SKY GOLD
- UPL
🔴 Bearish
- IEX
- RELIANCE
- WIPRO
🚫 Stocks to Avoid
- GAIL
- HAVELLS
- PFC
⚠️ Important Disclaimer
This market commentary is issued for educational and informational purposes only and does not constitute investment advice or a recommendation to buy, sell, or hold any securities.
Market investments are subject to risk, including loss of capital. Past performance is not indicative of future results. Investors are advised to consult a SEBI-registered investment advisor before making any investment or trading decision.
All investment decisions shall be taken solely at the discretion and risk of the investor.