Markets Plunge as Trump’s Actions Rattle Investors
Mumbai witnessed a significant drop in the sensex, with a staggering plunge of 1,235 points or 1.6%, closing at 75,838 points. This marks the lowest level seen since June, leaving investors on Dalal Street in a state of uncertainty. The day’s session was characterized by extreme volatility, as concerns over US President Donald Trump’s potential actions impacting India’s economic interests loomed large. Additionally, disappointing performances by leading companies and apprehensions regarding a possible rate hike by the Bank of Japan further dampened investor sentiment.
Foreign Funds Exit Amidst Market Turmoil
Foreign funds emerged as major sellers on Tuesday, with a net outflow of Rs 5,920 crore, as per BSE data. Notably, foreign portfolio investors have offloaded stocks worth nearly Rs 57,000 crore in January alone, based on combined data from BSE and NSDL. The sensex kicked off the day on a positive note, opening about 200 points higher at 77,262. However, it swiftly plummeted by over 700 points to touch a low of 76,261, before making a remarkable recovery of 950 points to reach a high of 77,337. Subsequently, selling pressures dragged the index down to an intraday low of 75,642, eventually settling near the day’s lowest level. The Nifty also mirrored a similar trajectory, concluding at 23,025 points, down by 320 points or 1.4%.
Expert Insights and Market Analysis
Vinod Nair from Geojit Financial Services highlighted that Tuesday witnessed a substantial downturn in domestic markets amidst heightened volatility, triggered by Trump’s announcement of trade tariffs on neighboring countries. This move injected fresh uncertainty into global markets, compounded by a feeble recovery in third-quarter earnings and a depreciating rupee, likely leading to further outflows by foreign investors. Siddhartha Khemka of Motilal Oswal Financial Services emphasized that Trump’s comments targeting BRICS nations and his intentions to impose hefty tariffs on countries reducing their dependence on the US dollar for global trade instigated negative sentiments in the Indian market. The anticipation of an interest rate hike by the Bank of Japan in its forthcoming decision on Friday also looms over global markets, potentially impacting borrowing costs worldwide. Market experts foresee continued pressure on markets in the immediate future, amidst a backdrop of mixed quarterly earnings and substantial FPI selling.
Jio Financial Ventures into Stock Broking
In an interesting development, Jio Financial announced its entry into the stock broking space with Jio Blackrock Broking. This strategic move underscores the evolving landscape of financial services in India, amidst a backdrop of market turbulence and shifting investor sentiments. The foray into stock broking by Jio Financial signifies a significant diversification of its portfolio, further expanding its presence in the financial markets. As market dynamics continue to evolve and global events shape investor behavior, the entry of new players like Jio Financial into the stock broking arena adds an intriguing dimension to the unfolding narrative of India’s financial sector.
