Sensex and Nifty News: Market Slips Again as Profit Booking, Global Worries Weigh on Sentiment

The Indian stock market couldn’t hold on to its brief recovery. Just a day after breaking a five-session losing streak, the Sensex and Nifty slipped back into the red on Tuesday, January 13.

The mood turned cautious as investors locked in profits amid ongoing concerns around US tariffs, steady foreign fund outflows, rising crude prices, and mixed global cues. By the closing bell, benchmarks had trimmed sharp intraday losses but still ended lower.

Market Performance: How the Indices Ended the Day?

The session started on a weak note and pressure only deepened as the day progressed. Both frontline indices touched their intraday lows before some late recovery.

• Sensex
  • Intraday low: 83,262.79 (down over 600 points, or 0.73%)
  • Closing level: 83,627.69, down 250 points or 0.30%
• Nifty 50
  • Intraday low: 25,603.30 (down 0.72%)
  • Closing level: 25,732.30, down 58 points or 0.22%

Broader markets showed mixed action. The BSE Midcap index slipped 0.16%, while the Smallcap index outperformed, rising 0.46%, signalling selective buying beneath the surface.

What Moved Sensex and Nifty Today? Key Triggers Explained

The fall wasn’t driven by a single headline. Instead, multiple pressure points came together, keeping traders defensive throughout the session.

1. US Tariff Concerns Continue to Hang Over Markets

Global trade uncertainty remained a major overhang. While hopes of an India–US trade deal have strengthened, the lack of clarity on timelines kept sentiment fragile.

Adding to caution, there were reports suggesting that no formal India–US trade talks are scheduled this week. This uncertainty, combined with continued tariff-related noise from the US, made investors hesitant to take aggressive positions.

Markets generally struggle in environments where global trade rules appear fluid—and that caution was clearly visible today.

2. Crude Oil Prices Move Higher

Crude oil prices jumped over 1%, driven by escalating tensions involving the US and Iran. Iran, being one of OPEC’s largest oil producers, remains a critical supply-side factor.

For India, higher crude prices are never good news.

• India depends significantly on crude oil imports and ranks among the world’s biggest importers of oil.
• Rising oil prices put pressure on:
  • The trade balance
  • The current account
  • Overall fiscal stability

This spike in crude added another layer of discomfort for equity markets.

3. Relentless Foreign Capital Outflows

Foreign institutional investors continued to stay net sellers, keeping pressure on frontline stocks.

Here’s the flow picture:

• Over ₹15,000 crore sold by FIIs in January so far (till January 12)
• Between July and December last year, cumulative FII selling stood at nearly ₹1.85 lakh crore

Sustained outflows of this scale often cap any sharp upside in the market, even when domestic investors try to absorb some of the selling.

4. Mixed Start to the Q3 Earnings Season

The December quarter earnings season has begun on an uneven note.

Early numbers from major IT companies failed to impress, adding to the cautious mood. With more large corporate results scheduled this week, investors preferred to stay on the sidelines rather than take fresh risks.

Earnings clarity remains crucial at current index levels, and until that improves, volatility is likely to stay.

5. Caution Ahead of the Union Budget

As the Union Budget approaches, expectations are building—but so are questions.

While markets expect the government to continue with growth-focused policies, concerns around:

• Fiscal consolidation
• Controlled government spending

have made participants cautious. Budget-related uncertainty often leads to short-term swings, and that nervousness was visible in Tuesday’s trade.

Stock-Specific Action: Gainers and Laggards

Movement within the Sensex remained stock-specific.

• Top gainers:
  • Eternal
  • ICICI Bank
  • Tech Mahindra
• Top laggards:
  • Trent
  • Larsen & Toubro
  • Reliance Industries

This divergence reflected selective buying, rather than broad-based confidence.

Sensex and Nifty News: The Bigger Picture

Tuesday’s session told a familiar story. The market is trying to stabilise, but every bounce is facing pressure from global risks, foreign selling, and near-term uncertainty.

For now, Sensex and Nifty are moving cautiously, reacting more to risk management than optimism. Until there’s clarity on global trade, crude prices, and earnings momentum, volatility is likely to remain part of the daily narrative.

Short recoveries may continue, but sustained strength will need stronger triggers—both global and domestic.

Source: Livemint