Indian share markets closed lower on Tuesday, January 13, giving up gains made in the previous session. Profit booking, worries over US trade actions, steady foreign investor selling, and mixed global signals weighed on sentiment.
The Sensex fell 250 points, or 0.30 percent, to close at 83,627.69. During the day, it had dropped more than 600 points to an intraday low of 83,262.79.
The Nifty 50 ended 58 points, or 0.22 percent, lower at 25,732.30, after touching a low of 25,603.30.
Among broader markets, the BSE Midcap index slipped 0.16 percent, while the Smallcap index bucked the trend and rose 0.46 percent.
Eternal, ICICI Bank and Tech Mahindra were the top gainers on the Sensex, while Trent, Larsen and Toubro, and Reliance Industries were among the biggest losers.
US tariff worries continue
Investors remained cautious over uncertainty around US trade policy. Although expectations of India–US trade talks rose after comments by the US ambassador to India, reports suggested that no formal talks are scheduled this week.
At the same time, Donald Trump warned that countries doing business with Iran could face a 25 percent tariff. Market experts said such measures could disrupt global trade, raise costs for businesses, and increase uncertainty for countries like India.
Crude oil prices move higher
Crude oil prices rose by more than one percent amid rising tensions between the US and Iran. Higher oil prices are a concern for India, which imports most of its crude oil. A sustained rise in prices can worsen the trade balance and put pressure on government finances.
Foreign investors keep selling
Foreign institutional investors have continued to sell Indian shares. So far in January, they have sold shares worth more than ₹15,000 crore. Between July and December last year, total outflows were close to ₹1.85 lakh crore, keeping pressure on the market.
Mixed start to Q3 earnings
The December quarter earnings season has begun on an uneven note. IT companies such as TCS and HCL Tech fell short of market expectations. Investors are now watching results from Infosys and Reliance Industries later this week.
Caution ahead of Budget
With the Union budget approaching, investors are also wary. While the government is expected to support growth, concerns remain that a stronger focus on fiscal discipline could limit spending and affect market sentiment in the short term.
Overall, experts say markets may remain volatile in the near term, driven by global developments, earnings results, and Budget-related expectations.
