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Nifty Plunges: Rs 3 Lakh Crore Wiped Out Amid Trade Fears
20 Jan
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.
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%.
