Sensex falls over 800 pts, investors lose Rs 10 L cr amid looming Trump tariffs, Chinese AI threat
Indian benchmark equity indices, experienced a notable decline today, with both the Nifty 50 and Sensex indices falling 1.14 per cent and 1.08 per cent, respectively. This downturn was broad-based, affecting all major sectors, leading to a total market cap loss of nearly Rs 10 lakh crore in one day.
The 30-share Sensex tumbled as much as 824.29 points to settle at 75,366.17. Mirroring the Sensex, NSE Nifty50 also ended lower by 263.05 points or 1.14 per cent at 22,829.15.
The selloff was largely driven by global headwinds, including growing concerns over the Chinese AI tool DeepSeek, which triggered a significant selloff in IT stocks. Additionally, escalating trade tensions fueled by US threats of imposing tariffs on major economies further weighed on investor sentiment. Domestically, weak Q3 corporate earnings and persistent FII outflows exacerbated the market’s downward trajectory, adding to the bearish momentum.
Highlighting the reasons behind decline, Vishnu Kant Upadhyay, AVP-Research and Advisory, Master Capital services, said, “ The overall earnings for the December quarter has given moderated results. Several sectors have shown a slower-than-anticipated recovery, adding to the negative sentiment already affected by high valuations. The combined impact of Trump’s tariff threats, the robust strength of the US dollar, and concerns regarding India’s slowing economic growth also created a challenging environment for the Indian stock market.”
“The Indian rupee has depreciated to a new low, foreign investors often withdraw their capital from markets in situations involving currency depreciation, as it raises the risk of loss of return,” he added. In January alone, FIIs have offloaded more than Rs 69,000 cr from Indian equities . Along with all these factors, the upcoming Fed meeting on January 28-29 also added to overall volatility, with investors exiting positions ahead of a major event.
According to Narendra Solanki, Head Fundamental Research- Investment Services, Anand Rathi Shares and Stock Brokers, tracking global cues markets opened on a negative note with declines visible across several sectors. During the afternoon session the lacklustre trade continued with both Sensex and Nifty falling around a per cent.
