Indian equity markets opened Monday’s session with a sharp downturn, as the benchmark Nifty 50 and the Sensex erased early gains. The indices succumbed to a confluence of global geopolitical anxieties and a domestic drag from heavyweight stocks. The Nifty 50 fell 200 points, hitting a low of 25,494.35, while the Sensex plunged 672 points to trade at its day’s low of 82,898.31.
Geopolitical Tensions Take Center Stage
Investor sentiment is currently grappling with significant global flux, particularly concerning potential trade escalations. Concerns are mounting over U.S. President Donald Trump’s recent tariff warnings directed at eight European countries, with potential hikes scheduled from February 1, 2026, and June 1, 2026. Such actions could trigger retaliatory measures from the European bloc, potentially igniting a global trade war, according to market strategists.
Adding to the geopolitical jitters is the ongoing dispute over Greenland, which has intensified ahead of President Trump’s meeting with NATO Secretary General in Davos. The White House’s assertive stance on Arctic security and Denmark’s position has raised diplomatic tensions, with several European nations voicing solidarity with Denmark and warning that tariff threats undermine transatlantic relations.
Domestic Heavyweights Drag Indices Down
The downturn was exacerbated by a broad-based sell-off in the market’s most influential constituents. Reliance Industries saw its share price drop 3.5% to Rs 1,406.30. ICICI Bank also faced pressure, with its shares falling 3.6% to Rs 1,360 following its third-quarter earnings report.
Tech Stocks Under Severe Pressure
Technology stocks, a significant component of the Nifty, were among the day’s biggest losers, with the Nifty IT index shedding substantial value. Wipro’s stock price crashed by as much as 10% to an intra-day low of Rs 241.55, pulling down peers like Tata Consultancy Services (TCS) and Infosys. Muted earnings in the tech sector, coupled with global uncertainties, have led to a cautious market stance.
Market strategists advise caution in the near term, anticipating continued volatility. However, they suggest that long-term investors can utilize these dips to selectively accumulate high-quality large-cap stocks that are expected to weather the storm.