BSE building.
Credit: PTI Photo
New Delhi: The Indian stock market’s key indices slumped to a six-month low on Tuesday with benchmark Sensex sliding by 1,235 points as foreign institutional investors’ selling continued to weigh heavily on the markets amid uncertainty over the impact of Donald Trump’s policies and poor corporate earnings.
The 30-stock benchmark Sensex of the BSE dipped 1.6 per cent or 1,235.08 points to close at 75,838.36 points. The wider Nifty 50 of the NSE plummeted 1.37 per cent or 320 points. The Nifty slipped below 23,000 points mark for the first time since June 7, 2024.
The combined market capitalisation of the BSE-listed companies declined by over Rs 7 lakh crore as a result of the Tuesday’s sell-off in the markets.
Apart from the uncertainty over the impact of US President Donald Trump’s policies on the Indian economy, analysts said derivatives expiry and disappointing corporate earnings also led to sell-off in the markets.
“Domestic markets experienced a significant decline today, with heightened volatility, followed by Trump's announcement of trade tariffs on neighbouring countries on his inauguration day, adding uncertainty into global markets,” said Vinod Nair, Head of Research at Geojit Financial Services.
The weak recovery in the ongoing Q3 earnings, coupled with a depreciating INR, are likely to prompt further outflows from FIIs, Nair added.
FII outflow from the Indian equities markets on Tuesday stood at $430.38 million. Since the beginning of the 2025 calendar year, FIIs have withdrawn over $7.7 billion from the Indian markets.
Senior Vice President – Retail Research at Religare Broking Ravi Singh said the equity indices declined due to a combination of disappointing earnings reports and concerns over global economic growth.
“Market sentiment turned cautious after US President Donald Trump’s announcement of trade tariffs on neighbouring countries, creating uncertainty around global trade dynamics. This move fueled concerns over potential disruptions in international trade, leading to a pullback in domestic equities,” Singh said.
Mid-cap and small-cap shares witnessed heavy selling pressures. Nifty Mid-cap select index dipped by 2.78 per cent. Nifty Small-cap 100 index slumped by 2.27 per cent, while the Mid-cap100 index plummeted 2.20 per cent.
Share price of Zomato crashed by around 11 per cent after disappointing Q3 earnings. Adani Ports dipped 3.74 per cent. NTPC, ICICI Bank, State Bank of India and Reliance Industries were among the biggest losers. Out of the 30 companies that are part of the Sensex 28 closed in the red.