**Stock Market in Turmoil: Understanding the Recent Bear Attack and BSE Sensex/Nifty50 Plummet**

The stock market was rocked by a significant downturn today, with the BSE Sensex and Nifty50 experiencing a sharp decline due to a bear attack fueled by substantial selling pressure in key shares. The Sensex plunged over 1,300 points, while the Nifty50 briefly dropped below 23,000. By the end of the trading day, the BSE Sensex closed at 75,838.36, down 1,235 points or 1.60%, while the Nifty50 finished at 23,045.30, down 299 points or 1.28%.

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Market Uncertainty Due to Trump’s Trade Policy Stance

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The market turmoil was exacerbated by the uncertainty surrounding U.S. President Donald Trump’s trade policy stance. Investors remained on edge following Trump’s announcement of potential tariffs on neighbouring countries, which raised concerns about policy changes and their impact on global markets. Trump’s administration is considering imposing a 25% tariff on Mexico and Canada, leading to fears of inflation, economic overheating, and currency fluctuations that could affect bond markets.

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Significant Losses in Zomato and Other Major Stocks

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Zomato’s shares took a significant hit, plummeting by over 11% after reporting a 57% year-on-year decrease in net profit for the December quarter. This decline in Zomato’s stock contributed to the overall drop in the Sensex. Other major stocks like Reliance Industries, ICICI Bank, SBI, and M&M also suffered losses, collectively accounting for a substantial portion of the market decline.

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Earnings Concerns and Sector Performance

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Earnings reports for the third quarter are projecting only a modest 3% year-over-year growth in EPS for Nifty50 companies. While some sectors like capital goods, healthcare, and telecom are expected to see strong profit growth, others like metals, chemicals, consumer staples, banks, and oil & gas are anticipated to underperform. Initial corporate results have been lackluster, with stagnant profit after tax despite a 4% increase in revenue from the previous year.

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Impact on Realty and Consumer Stocks

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The Nifty Consumer Durables index saw a 4% decline, primarily driven by poor performances from Dixon Technologies and Amber Enterprises. Dixon Technologies’ shares fell by nearly 14% following their Q3 results. Additionally, the Nifty Realty Index dropped by 4.12%, with companies like Oberoi Realty, Lodha, and Prestige Estates Projects leading the downward trend.

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Foreign Investment Outflow

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The market is also facing pressure from foreign institutional investors (FIIs) who have been consistently selling off their investments. As of January 20, 2025, FIIs have withdrawn a staggering Rs 48,023 crore from equities, indicating a lack of confidence in the current market conditions.

In times of market uncertainty and volatility, it’s crucial for investors to stay informed and cautious with their financial decisions. Understanding the factors contributing to the market downturn can help individuals navigate these challenging times and make informed choices for their portfolios. Stay tuned for further updates on the evolving market situation and expert insights into potential strategies for weathering the storm.