On the 30-share Sensex, losses were led by Bajaj Finance, InterGlobe Aviation (IndiGo), Asian Paints, Eternal and Bajaj Finserv, with shares down between 1% and 2% in early trade.The broader market also weakened, with the midcap and smallcap indices falling 0.3% and 0.4% respectively, underscoring cautious risk appetite.
Among individual stocks, Aditya Birla Fashion & Retail rose as much as 9%, outperforming the broader market.
Shares of Tata Capital rose more than 2% after the lender reported a strong quarterly result in December, driven by a sharp rise in profits and steady growth in key operating metrics.
Expert views
Market volatility is likely to persist in the short term until some clarity emerges on the standoff between the US and Europe over Greenland tariffs. As both sides have hardened their positions, uncertainty will continue for some time, said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments. He added that “a new development is likely today if the US Supreme Court’s ruling on the Trump tariffs goes against President Trump. But there is no certainty as to whether the ruling will happen today. If so, the ruling might change the scenario completely overnight. From a fundamental perspective, there is both good news and not so good news for the market, Vijayakumar said, adding that the good news is that the IMF has forecast India’s GDP growth in FY26 increased to 7.3%, confirming the robust performance of the economy despite many headwinds.
“A concern is that early Q3 results do not indicate a recovery in earnings growth. This is likely to change as results from auto companies roll in as this sector has done well in Q3 and it is encouraging that the growth momentum in the sector continues,” Vijayakumar said.
Geopolitical and geo-economic issues will continue to dominate in the short term and influence the direction of the market, Vijayakumar said, adding that investors can monitor developments and continue to follow a policy of nibbling on high-quality stocks on declines.
Global markets
Asian markets retreated on Tuesday as renewed trade war concerns dampened risk appetite, sending US Treasury yields to their highest level in more than four months, while the dollar remained under pressure from selling of US assets.
Investor unease grew after President Trump revived tariff threats as he seeks greater U.S. control over Greenland, a move seen as risking new trade frictions with Europe.
U.S. stock futures pointed lower, with the Nasdaq and S&P 500 contracts down about 1%. The yield on the 10-year Treasury note rose to 4.265%, the highest level since early September, as the dollar continued to weaken.
MSCI’s broad index of Asia-Pacific shares outside Japan fell 0.44%, further from last week’s record highs. In commodities, gold traded little at $4,670 an ounce, hovering just below the record peak reached a day earlier.
FII/DII tracker
On the institutional front, foreign institutional investors (FIIs) sold shares worth nearly Rs 3,263 crore on January 19, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 4,234 crore.
Rough impact
Oil prices headed higher on Tuesday, buoyed by stronger-than-expected economic growth data from China that boosted expectations for demand even as markets weighed President Trump’s renewed tariff threats toward Europe linked to his bid to acquire Greenland.
Brent crude futures rose 19 cents, or 0.3%, to $64.13 a barrel by 0100 GMT.
Rupee vs dollar
The Indian rupee fell marginally in early trade on Tuesday, weakening by one paisa to 90.91 against the US dollar, remaining under pressure near the psychologically important 91 level as persistent flow-driven demand for dollars kept the risk of a slide to record lows in view.
Across the region, Asian currencies were mixed, while the dollar softened overall. The dollar index fell to a one-week low of 99.06, providing limited relief for emerging market currencies amid uneven risk sentiment.
(with input from agencies)
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