Why did the Nifty 50 index fall significantly on Tuesday?

The Nifty 50 index fell due to renewed US tariff uncertainty, which revived global trade war fears and led to broad-based selling across sectors.

Which sectors were most affected by the Nifty 50's decline?

The Realty sector led the decline with a 5% drop, followed by Auto, IT, Media, Metal, PSU Bank, Pharma, Oil & Gas, and Consumer Durables.

What is the expected market outlook following the recent sell-off?

Market volatility is expected to persist until there is more clarity on international trade disputes, with geopolitical and geoeconomic factors continuing to drive market direction.

Home / Business and Economy / Nifty Plunges: Rs 3 Lakh Crore Wiped Out Amid Trade Fears

Nifty Plunges: Rs 3 Lakh Crore Wiped Out Amid Trade Fears

20 Jan

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Summary

Nifty 50 index fell 1.38%, erasing nearly Rs 3 lakh crore in market value.
Renewed US tariff uncertainty revived global trade war fears, impacting equities.
Realty sector led the broad-based decline, with other sectors also falling.

Nifty Plunges: Rs 3 Lakh Crore Wiped Out Amid Trade Fears

On Tuesday, companies within the blue-chip Nifty 50 index saw their market capitalization drop by approximately Rs 3 lakh crore. The index concluded the trading session with a substantial loss of 1.38%, or 353 points, closing at 25,232. This decline was characterized by widespread selling pressure across various market sectors.

Global market sentiment soured due to revived fears of a trade war, stemming from renewed US tariff uncertainty. This geopolitical development boosted Treasury yields and initiated a sell-off in equities worldwide, subsequently dragging Indian equities lower. Market participants anticipate continued volatility until there is greater clarity on international trade disputes.

All sectoral indices finished in negative territory. The Realty sector experienced the steepest decline, falling by 5%. Other sectors, including Auto, IT, Media, Metal, PSU Bank, Pharma, Oil & Gas, and Consumer Durables, saw losses ranging from 1.5% to 2.5%. Midcap and small-cap indices also suffered significant drops, each declining by over 2.5%.