India’s equity markets experienced a significant sell-off on Tuesday, January 21, 2025, as the earnings season gained momentum. The Nifty 50 index ended the day 320 points lower, settling just above the 23,000 mark. Meanwhile, the Sensex saw a sharp decline, shedding 1,230 points during the session.
The sell-off wiped out more than ₹7 lakh crore in investor wealth, as market participants reacted to a combination of earnings results and stretched valuations. Many companies reported results that were either in line with or marginally below expectations, adding to the market’s unease.
After a positive start to the week on Monday, both the Sensex and Nifty indices fell into the red during Tuesday’s trading. The market’s initial optimism was dampened by reactions to U.S. President Donald Trump’s inaugural address.
Although Trump did not propose extreme tariffs on China, his focus on tariffs, immigration, and energy reserves raised concerns. His remarks led to a spike in volatility, particularly in sectors sensitive to trade and policy uncertainties.
The Nifty Midcap index also saw a significant decline, falling over 1,200 points or 2%. Similarly, the Smallcap index lost more than 2% during the trading session. At one point, both benchmark indices experienced a brief rally, crossing past the 23,400 mark. However, this was short-lived as the selling pressure resumed in an extremely volatile 30-minute stretch post-noon.
The market reaction was particularly severe in the case of Dixon Technologies, whose shares plunged 14% after reporting its quarterly numbers. This decline also affected other Electronics Manufacturing Services (EMS) companies, including Amber Enterprises and Kaynes Technologies, which saw their stocks fall by up to 8%.
Food delivery aggregator Zomato Ltd. reported its earnings on Monday, which further contributed to market pressures. Zomato highlighted a slowdown in its core food delivery business and its quick-commerce unit, Blinkit. The company indicated that Blinkit would likely remain loss-making in the near term due to its ongoing investment in store expansion plans.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jan 21, 2025, 5:36 PM IST
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