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On the first trading day of the week i.e. Monday (January 19), the Indian stock market started with a decline. Amidst bad signals from the global market, both the major indices of the domestic market opened in the red.
In early trade, BSE Sensex fell by about 600 points and came near the level of 82,950. At the same time, Nifty 50 is also trading around the level of 25,500 after falling by more than 200 points. A fall of more than 150 points was seen in Gift Nifty since morning, the effect of which was also visible on Dalal Street.
The biggest reason for this decline in the market is the statement of US President Donald Trump, in which he has warned of imposing heavy taxes (tariffs) on European countries. Apart from this, the sentiment of investors has also deteriorated due to selling in big shares like Reliance and ICICI Bank.
Out of 30 Sensex stocks, 14 are rising and 16 are declining. Reliance and ICICI Bank shares are down by up to 3%. Whereas shares of Indigo, Tech Mahindra and HUL are up by up to 4%. A decline of up to 2% is being seen in NSE’s IT, Media, Realty and Oil & Gas.
4 big reasons for the decline in the stock market
1. Global markets fall due to Trump’s threat of tariffs
US President Donald Trump has recently warned European countries regarding Greenland. He has said that heavy import duties (tariffs) will be imposed on countries that oppose his plans. After this statement, there is an atmosphere of fear in the markets from America to Asia. Experts say that if a trade war-like situation arises, then there may be more instability in the market in the coming days.
2. Pressure in shares of Reliance and ICICI Bank
After the release of the third quarter (Q3) results of the country’s largest company Reliance Industries (RIL), its shares are falling today. Reliance’s profit has been as per expectations, but due to slight decline in margins, investors started profit booking. While ICICI Bank’s results also remained in-line, the stock fell by about 3% in early trade. Due to the fall of these two stocks with heavy weightage, pressure on Nifty has increased.
3. Foreign investors (FIIs) are continuously withdrawing money.
The process of foreign institutional investors (FIIs) withdrawing money from the Indian market is not stopping. So far in the month of January, they have sold about Rs 16,600 crore. However, domestic investors (DIIs) are trying to support the market by continuously buying, but this support seems to be waning in front of global pressure.
4. Record rise in gold and silver, dollar strengthened
Amid growing uncertainty around the world, the demand for gold and silver as safe investments has increased. This morning gold crossed $4,670 with a gain of about 1.6%, which is a new record. Silver prices also saw a rise of more than 3%. On the other hand, the dollar index continues to fluctuate after Trump’s statements, due to which the Indian rupee is also under pressure.
Mixed business in global market
- In Asian markets, Korea’s Kospi was trading up 0.96% at 4,887 and Japan’s Nikkei index was down 0.97% at 53,412.
- Hong Kong’s Hang Seng index traded down 0.99% at 26,578 and China’s Shanghai Composite index was up 0.13% at 4,107.
- On January 16, America’s Dow Jones fell 0.17% and closed at 49,359. The Nasdaq was down 0.062% and the S&P-500 was down 0.064%.
Foreign investors sold shares worth ₹4,346 crore
- On January 16, foreign institutional investors (FIIs) sold shares worth ₹4,346 crore. During this period, domestic institutional investors (DIIs) bought shares worth ₹3,935 crore.
- In December 2025, FIIs had sold shares worth a total of ₹34,350 crore. During this period, DIIs controlling the market had bought shares worth ₹79,620 crore.
What will happen next: Keep an eye on these triggers
Market experts believe that there will be fluctuations in the market throughout this week. Investors are now eyeing China’s GDP data and Europe’s inflation rate (CPI) data. If global data comes out worse than expected, the decline may increase.
Quarterly results season is going on in India, hence action will be seen in selected stocks. Technically, the level of 25,500 can act as a strong support for Nifty.
Sensex closed 187 points higher on Friday
There was a rise in the stock market on the last trading day of last week i.e. Friday (January 16). Sensex closed at 83,570, up 187 points. Nifty also rose 28 points, it closed at the level of 25,694.
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