Mumbai: The benchmark BSE Sensex and NSE Nifty lost more than one percent of their value on January 21, 2025 (Tuesday). The 30-share barometer lost 1,235 points to settle at a level that is more than seven-month low. The broad Nifty index decreased by 320.10 points to close at 23,024.65

The bloodbath was caused primarily when investors started selling as it was triggered by worries sentiment after trade wars, that were ignited when US President Donald Trump announced tariffs on his inauguration day to neighboring countries. The Sensex plummetted by 1,235.08 points to close at 75,838.36 while ICICI Bank and Reliance Industries reported losses.

Why did the stock market crash?

When asked what happened to the Dalal Street, all the bloodshed, Vinod Nair, the Head of Research, Geojit Financial Services commented how unfavorable and domestic indices plummetted due to Trump’s announcement of trade tariffs on the neighboring nations. Based off this, he predicted that Tramps recovery of rules of company won’t let FIIs sell further.

The announcement by Trump about implementing trade tariffs on the nations neighboring the US during his inauguration along with his inauguration proclaiming trade tariffs has definitely added volatility to the global markets. Volatility was heightened today as local markets dropped significantly. The negative return of Q3 earnings coupled with a weakening INR dollar are likely to predict even more massively damaging outflows from Foreign Institutional Investors. ” said Vinod Nair, his sources have proved accuraate so far.

Among the Sensex pack, laggards were

NTPC

Zomato

Adani Ports

ICICI Bank

State Bank of India

Reliance Industries

Mahindra & Mahindra

Bajaj Finance

Axis Bank

Tech Mahindra

UltraTech cement and HCL Technologies are the only two stocks benefitting from this massacre.

Stocks were trying to pull an underdog effort by increasing but failed to do so During Tuesday morning. The BSE index gained 224,28 to 77297,72 which makes the 30 stock SENSEX increase profit to 224,28. The NSE index also profited because the Nifty index increased by 88.55 points to 23426.30. On the other hand the SENSEX index dropped all the profits as well by eluding the upper limit of 1% to manifest around 76319. The Nifty index also dropped by 180 points thereby making a final score of 23156.05.

The stock market Scientists are predicting that in terms of stock advancement depreciation is looming due to the fact that the local markets are eager to see the Q3 earnings and waiting of the account followed. The market experts said investors are also waiting follow the from the America market, mainly the trade after the motivate international president Donald Trump.

Shanghai, Hong Kong, and Tokyo markets ended the day with gains whereas Seoul and Shanghai had no change. The US financial markets were shut down on Monday in remembrance of Martin Luther King Jr Day. The global oil benchmark Brent gained 0.05% to reach USD 80.19 a barrel.

Foreign Institutional Investors (FIIs) further offloaded equities, a trend that seems to be the norm. Based on report, equities worth Rs 4,336.54 crores were sold on Monday. The BSE Sensex recorded an increase of 454.11 points to settle at 77073.44 on 20th January 2025. The Nifty index registered an increase of 141.55 points to reach a record high of 23344.75.