Market views: On January 21, Indian benchmark indices closed on a weak note amid selling across sectors. Nifty remained around 23,000 today. At the end of the trading session, the Sensex closed at 75,838.36 with a fall of 1,235.08 points or 1.60 percent. At the same time, Nifty closed at 23,024.65 with a decline of 320.10 points or 1.37 percent.
Vinod Nair of Geojit Financial Services It is said that there was a huge decline in the domestic market today. Volatility increased in the market. Donald Trump announced the imposition of tariffs on neighboring countries on the day of his inauguration. This increased uncertainty in global markets. There is a possibility of increased selling by FIIs due to the weak recovery in the third quarter results as well as the fall in the rupee.
Mid- and small-cap stocks underperformed compared to benchmark indices. The realty sector suffered the most due to weak pre-result updates. Whereas banks suffered losses due to stress in asset quality. Additionally, market sentiment is being dampened by expectations of an interest rate hike by the Bank of Japan.
Siddharth Khemka of Motilal Oswal Financial Services Says that due to continuous selling by FIIs, uncertainty over Trump’s tariff policies and weaker than expected quarterly results of many companies, Nifty fell sharply and closed 320 points lower at 23,025 (-1.4 percent). . Heavy selling pressure was also seen in the broader market. The Nifty Midcap 100 and Smallcap 100 indices fell by more than 2 per cent.
On Monday, FIIs sold shares worth Rs 4,337 crore. FIIs have withdrawn more than Rs 50,000 crore so far in January. Targeting the BRICS countries, Donald Trump has said that he will impose 100 percent tariff on countries that reduce their dependence on the US dollar in global trade. His announcement created pressure on the Indian market. The global market is also scared of the possibility of increasing interest rates by the Bank of Japan (BOJ) on Friday. If this happens, the cost of borrowing globally may be affected.
It is expected that the market will remain under pressure in the near future amid mixed quarterly results and heavy FPI selling. Investors will keep an eye on the third quarter results of major companies like HDFC Bank, HUL, BPCL to be announced tomorrow. Midcap IT stocks will also be worth keeping an eye as Coforge and Persistent Systems will also declare their results tomorrow.
Currency Check: Rupee closed flat, USDINR spot price expected to be between Rs 86.35 to Rs 86.80
Ajit Mishra of Religare Broking It is said that there was volatile trading in the market on Tuesday. This decline signals the resumption of a negative trend after a brief consolidation phase. Nifty may now be seen falling towards the level of 22,700. Continued selling by FIIs and a sluggish start to the results season are the major factors weighing on market sentiment. Additionally, the recent rise in the volatility index India VIX is further reinforcing the existing cautious stance. Given these conditions, it would be advisable to adopt a “sell on bounce” strategy in Nifty along with strong risk management.
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