Stock market today (AI image)

Stock market crash today: Indian equity benchmarks, Nifty50 and BSE Sensex, crashed in trade on Tuesday, with a sharp selloff in the latter half of the session. Technology stocks led the fall amid uneven earnings signals, while ongoing global trade uncertainties unleashed by US President Donald Trump and sustained foreign investor selling weighed heavily on market sentiment. Nifty50 closed the day at 25,232.50, down 353 points or 25,232. BSE Sensex ended at 82,180.47, down 1,066 points or 1.28%.The selloff erased nearly Rs 9 lakh crore in investor wealth, pulling the total market capitalisation of BSE-listed companies down to about Rs 456 lakh crore.

Why did stock market crash today? Top reasons

1. Technology shares were the biggest drag on the benchmarks, pushing indices to multi-month lows. The Nifty IT index dropped 2 percent to become the worst-performing sector, with all its constituents ending in negative territory.The subdued start to the earnings season has revived concerns about the pace of profit recovery, particularly for export-focused sectors such as information technology.“An area of concern is that early Q3 results do not indicate a recovery in earnings growth. This is likely to change when the results of auto companies start flowing in since this sector has done well in Q3 and it is heartening that the growth momentum is continuing in the sector,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments.2. Global cues remained weak, adding further strain to domestic markets, as fresh tariff-related developments unsettled investor confidence worldwide. Risk appetite took a hit after renewed trade frictions resurfaced, with MSCI’s broad Asia-Pacific index excluding Japan slipping 0.3 percent. The decline followed comments from US President Donald Trump, who threatened new tariffs on eight European Union countries in an effort to press for greater US control over Greenland, a move that investors interpreted as reviving strains in transatlantic trade ties.The cautious mood extended to US markets as well, with futures on the Nasdaq and the S&P 500 sliding by around 1 percent. At the same time, the yield on the 10-year US Treasury climbed to 4.265 percent, its highest level since early September, reflecting lingering worries that interest rates could stay elevated for longer, even as the dollar continued to soften.Analysts expect near-term volatility to remain elevated until there is more clarity on the tariff dispute between the United States and Europe linked to Greenland. With both sides adopting firmer stances, uncertainty is likely to persist, said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments. He noted that “a new development is possible today if a U.S. Supreme Court ruling on Trump-era tariffs goes against the President. However, there is no certainty on whether the ruling will come today. If it does, it could change the scenario completely overnight.”3. Meanwhile, sustained foreign selling continued to pressure equities, with overseas investors extending their net outflow streak to a tenth straight session. Foreign institutional investors sold shares worth nearly Rs 3,263 crore on Monday, January 19, reflecting ongoing caution amid heightened global trade and geopolitical risks.Purchases by domestic institutions provided some cushion but were insufficient to offset the broader selling pressure. Domestic institutional investors bought equities worth around Rs 4,234 crore on the same day, offering limited support even as benchmark indices continued to slide.4. A strong surge in precious metals reflected a clear shift towards risk aversion, with investors seeking refuge in traditional safe-haven assets as global trade tensions intensified. Gold prices crossed the $4,700-per-ounce mark for the first time on Tuesday, while silver stayed close to record highs, after US President Donald Trump’s renewed tariff threats against European partners further dented market sentiment worldwide.Spot gold climbed 1 percent to $4,717.03 an ounce by 0730 GMT, having earlier touched a record peak of $4,721.91. February gold futures in the US advanced 2.8 percent to $4,722.70 an ounce. Silver, after hitting an all-time high of $94.72 earlier in the session, eased slightly by 0.5 percent to $94.23 an ounce.Silver has begun 2026 with exceptional momentum, rising over 35 percent, or nearly Rs 85,000, in domestic markets, aided by tight supply conditions and heightened geopolitical risks involving the US, Iran and Greenland. The rally accelerated further this week after MCX silver futures broke above the key psychological level of Rs 3 lakh per kg. During Tuesday’s trade, prices jumped more than 2.5 percent, or close to Rs 8,000, to Rs 3,19,949 per kg.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)