Global markets sank sharply yesterday, triggering what many described as a bloodbath. Asian markets continued to trade lower this morning. Investor anxiety has intensified over US President Donald Trump’s aggressive push to take control of Greenland, with markets reacting sharply to the geopolitical risks involved.
All eyes are now on Trump’s speech at the World Economic Forum in Davos, Switzerland, scheduled for today. If there is no sign of compromise or moderation, market tensions could worsen further. Analysts warn that a forceful US move on Greenland could seriously weaken NATO unity and open the door for greater Russian influence in Europe. Political and business leaders gathering in Davos are expected to convey these risks directly to Trump.
European pension funds and institutional investors, unsettled by Trump’s stance, have begun selling US equities and bonds. A portion of this money is being redirected towards gold and emerging markets.
As a result:
US equity markets fell nearly 2 percent yesterday
US bond prices declined, pushing yields higher
Gold surged nearly 3 percent, crossing $4,800 an ounce
Global worries and disappointing corporate earnings dragged Indian markets sharply lower. The total market capitalisation of the BSE fell by over ₹10 lakh crore in a single session.
Asian markets opened lower today, though the steep fall seen earlier in the week has not repeated so far. European markets, which had dropped around 1.5 percent on Monday, fell by only about 1 percent yesterday.
US market futures are indicating a mild recovery today after Tuesday’s 2 percent fall. Dow Jones futures were up 0.22 percent, S&P futures rose 0.31 percent, and Nasdaq futures gained 0.33 percent.
At Gift City, Gift Nifty moved up to 25,310 in early trade, signalling a positive opening for the Nifty.
Rising global tensions and weak third-quarter earnings pushed Indian indices down to levels last seen in mid-October. The Sensex fell over 1,200 points intraday before recovering slightly. The Nifty lost more than 400 points at one stage and later recovered around 60 points. Broader markets suffered deeper losses.
Sensex fell 1,065.71 points (1.28 percent) to close at 82,180.47
Nifty declined 353 points (1.38 percent) to 25,232.50
Bank Nifty dropped 487.15 points (0.81 percent) to 59,404.20
Mid cap 100 index fell 2.62 percent
Small cap 100 index declined 2.85 percent
Market breadth remained weak. On the BSE, 707 stocks advanced while 3,590 declined. On the NSE, 538 stocks rose and 2,684 fell.
All sectoral indices ended in the red. Realty stocks were hit the hardest. Shares of Sobha, Oberoi Realty, Lodha Group, Godrej Properties and Prestige Group fell between 5 percent and 10 percent. The realty index dropped over 5 percent and has now declined for ten consecutive sessions, losing around 9 percent so far this month.
Consumer durables, healthcare, auto, IT, pharma, metal and media stocks also saw heavy selling.
Foreign investors continued to sell, offloading shares worth ₹2,938 crore in the cash market. Domestic funds and institutions bought shares worth ₹3,665 crore.
Technical analysts say the Nifty’s fall to three-and-a-half-month lows could open the door for a rebound. However, resistance is expected between 25,300 and 25,400. Support levels are seen at 25,175 and 25,075.
Persistent Systems reported strong revenue growth, but margins weakened due to higher labour-related costs. Net profit declined 6.7 percent.
United Spirits delivered better-than-expected results, with revenue, operating profit and net profit all rising, though margins narrowed slightly.
DCM Shriram posted higher revenue, but net profit fell 19 percent due to margin pressure.
Shoppers Stop saw modest sales growth, but profits dropped sharply.
IndiaMART reported strong profit growth despite a small dip in operating profit.
AU Small Finance Bank recorded strong growth in net interest income and net profit.
Supreme Petrochem reported a weak quarter, with sharp declines across revenue and profit.
Rallis India saw higher revenue and operating profit, but net profit fell sharply due to labour costs and exceptional items.
Electronics manufacturer Cyient DLM reported lower revenue but a marginal rise in profit.
Trump’s Greenland strategy has triggered a shift away from US assets. European funds are moving money into gold, driving a sharp rally.
Gold rose nearly 2 percent yesterday to a high of $4,767 an ounce before closing slightly lower at $4,764. This morning, prices briefly dipped before jumping to $4,843, indicating further upside.
Silver rose close to $96 an ounce before easing due to profit booking. Prices remain volatile.
In Kerala, 22-carat gold rose sharply, with prices touching ₹1,10,400 per sovereign before closing at ₹1,09,840. With global prices rising, another increase is expected today.
As European funds cut exposure to US bonds, bond prices fell and yields rose. The dollar index dropped nearly 1 percent to 98.56, down almost 9 percent over the past year.
The euro, pound and Swiss franc strengthened against the dollar, while the Japanese yen weakened amid heavy bond selling in Japan.
US 10-year bond yields rose to 4.285 percent, while 30-year yields climbed to 4.92 percent.
Despite global dollar weakness, the Indian rupee continued to fall due to a widening trade deficit and sustained foreign outflows. The rupee nearly touched its record low of 91.08 before closing at 90.98 per dollar. RBI intervention helped limit losses.
So far in January, the rupee has weakened by 1.2 percent, and by 6.5 percent in the current financial year.
Crude oil prices rose about 1.5 percent after Kazakhstan’s Tengizchevroil announced production disruptions. Brent crude climbed to around $65 a barrel.
Cryptocurrencies continued to fall amid rising geopolitical risk. Bitcoin slipped below $89,000, while Ether and Solana saw steeper losses.
(Tuesday, January 20, 2026)
Sensex: 82,180.47 (–1.28 percent)
Nifty 50: 25,232.50 (–1.38 percent)
Bank Nifty: 59,404.20 (–0.81 percent)
Mid cap 100: 58,085.35 (–2.62 percent)
Small cap 100: 16,701.05 (–2.85 percent)
Dollar: ₹90.98
Gold (ounce): $4,764.40
Gold (sovereign): ₹1,09,840
Brent crude: $64.07
