Both the Nifty media and IT indices fell by over 2%, illustrating the widespread nature of the downturn across sectors. Market expert Sameet Chavan noted, “Investors should brace for continued volatility as the budget approaching creates an anxious environment for traders.” Heavy selling was reported across various sectors, with mid and small-cap stocks underperforming as the broader market retracted. Pankaj Malik, another financial analyst, remarked, “We’ve observed heavy selling, particularly from foreign investors, reflecting the volatility and uncertainty surrounding potential tariffs under Trump’s administration.
ITC Hotels listing NSE, BSE: Date confirmed – 'Scrip will be in Trade-for-Trade segment for…'https://t.co/JQvKPcub4M
— ET NOW (@ETNOWlive) January 27, 2025
The Indian stock market experienced a significant downturn on January 27, 2025, with the benchmark Sensex plunging by 750 points. This sharp decline led to unprecedented losses estimated at ₹10 lakh crore, reflecting growing investor anxiety and a tumultuous economic environment. The dramatic downturn is primarily attributed to sustained selling pressure from foreign institutional investors and rising concerns surrounding potential trade tariffs introduced by former U.S. President Donald Trump.
These factors have shaken market confidence significantly. YES Bank and IDFC First Bank felt the brunt of these challenges.
? Nifty hits a 7-month low; HCLTech and Tech Mahindra lead losses
Here's how the market panned out today! ?#Nifty #StockMarket pic.twitter.com/VP7kjGRMVx
— ET NOW (@ETNOWlive) January 27, 2025
YES Bank shares showed slight resilience following its Q3 results, reflecting increased net profits but still facing significant volatility due to broader market trends.
Stock Market Fear & Greed only Neutral despite hitting all-time highs this week ? Bullish? ? pic.twitter.com/mIuuQlnmyC
— Barchart (@Barchart) January 25, 2025
On the other hand, IDFC First Bank’s shares plummeted over 7% after dismal Q3 earnings revealed a staggering 53% drop in net profit. The Nifty index was similarly impacted, opening below the psychologically significant 23,000 mark and continuing to fall throughout the day.
Sensex faces uncertain market turmoil
FIIs have been selling Indian stocks for the past 3-4 months. There is one way to show them how wrong they are.
GOI should cut capital gains tax back to 10% so the market rallies a lot and to show these FII losers how wrong they have been in selling Indian stocks.
What an idea…
— Samir Arora (@Iamsamirarora) January 26, 2025
Experts offer mixed predictions about the Indian stock market’s immediate future.
Some analysts suggest short-term resilience could be achieved if specific economic indicators point positively; others urge caution, reinforcing the need for traders to remain agile amid the heightened volatility. The outlook for the Indian stock market remains precarious as it grapples with internal struggles and external pressures. With the Union Budget set to be unveiled soon, all eyes will be on upcoming policies and their potential impact on the larger financial ecosystem.
Despite the current chaos, intrinsic value remains within many stocks, and it is advised to look for opportunities for both short-term gains and potential long-term investment strategies. This tumultuous time calls for astute observation and strategy from investors as they navigate through the uncertain waters of the financial world
