Sensex crashes 1,065 points; Nifty sheds 353 points:Indian markets extend losses on growing geo-political tensions over the Greenland issue

Benchmark Indian stock indices saw significant declines on Tuesday as relentless selling pressure, foreign fund outflows and geopolitical tensions weighed on investors’ sentiment. Sensex dropped by 1,065 points (or 1.06%) to 82,180.47 level at close, while Nifty50 was down 353 points (or 1.36%) to 25,232.50​​ level​​​​​, dragged down by IT and financial shares. From the 30-Sensex firms, Eternal, Bajaj Finance, Asian Paints, InterGlobe Aviation, Trent and Bajaj Finserv were among the laggards. However, Kotak Mahindra Bank, State Bank of India, UltraTech Cement and ITC were among the gainers. Foreign institutional investors offloaded equities worth ₹3,262.82 crore on Monday, while Domestic Institutional Investors (DIIs) remained buyers as they bought stocks worth ₹4,234.30 crore, according to exchange data. Global Market Performance Major Reasons for the Stock Market Decline 1. Weak Global Cues Triggered the Fall
The decline began amid mixed signals from Asian markets. Japan’s Nikkei, China’s SSE, and Hong Kong’s Hang Seng traded in the red, while South Korea’s KOSPI posted marginal gains. Although US markets were closed on Monday due to a holiday, US futures were down over 1%. Global risk sentiment weakened following former President Donald Trump’s threat of fresh tariffs on NATO allies, reviving US–Europe trade tensions. 2. Persistent FII Selling Added Pressure
Foreign Institutional Investors (FIIs) continued to offload equities for the 10th consecutive session in January. On Monday alone, FIIs sold shares worth ₹3,262 crore. Except for one session of marginal buying at the start of the month, selling has dominated. While Domestic Institutional Investors (DIIs) offered support by purchasing shares worth ₹4,234 crore, heavy FII outflows weighed on the market. 3. Mixed Q3 Earnings and IT Sector Weakness
Quarterly earnings remained uneven, with the IT sector under pressure following weak guidance from Wipro. The IT index fell 1.1%. Market breadth was negative, with 2,373 stocks declining against 983 advancing. 4. Trade War Concerns and Tariff Uncertainty
Trade war fears resurfaced amid uncertainty over US tariff policies. Markets are closely watching the US Supreme Court’s decision on Trump-era tariffs. An unfavorable ruling could significantly impact global markets. 5. Rupee Weakness and Rising Crude Oil Prices
Rupee fell 7 paise to close at record low of 90.97 (provisional) against the US dollar due to importer demand, continued FII outflows, and global uncertainty. Meanwhile, Brent crude rose 0.11% to $64.01 per barrel, raising concerns about inflation and fiscal pressure. 6. Surge in India VIX and Weekly Expiry Impact
India VIX climbed over 4% to 12.34, indicating heightened investor nervousness. Volatility increased further due to Nifty’s weekly expiry, leading to derivative position unwinding. 7. Sectoral Performance and Key Stocks
Realty, media, and IT stocks declined the most. Shares of Bajaj Finance, Bajaj Finserv, Asian Paints, and InterGlobe Aviation fell up to 2%. On the positive side, NTPC and Hindustan Unilever gained up to 1%. Foreign Investor Activity Market Closing Summary On December 19, the Indian equity market ended lower. The Sensex declined 324 points to close at 83,246, while the Nifty fell 108 points to settle at 25,585.