After starting the day on a negative note, the benchmarks dragged further as the session progressed and ended the day on a weak note.Indian equities closed in the negative zone on Tuesday. 42 out of 50 constituent stocks of Nifty50 ended in the negative territory with the losses led by Trent, Adani Ports, NTPC, ICICI Bank, M&M, SBI, Adani Enterprises, and Bharat Electronics.At the closing bell, the BSE Sensex stood lower by 1,235 points (down 1.6%).Meanwhile, the NSE Nifty closed lower by 299 points (down 1.3%).Apollo Hospital, BPCL, and JSW Steel were the top gainers today.Trent, NTPC, and SBI on the other hand, were among the top losers today.The GIFT Nifty ended at 23,120 down by 234 points.The BSE Mid Cap and the BSE Small Cap index ended 2% lower.Sectoral indices are trading on a negative note with stocks in the realty sector, telecom sector, and banking sector witnessing selling pressure.The rupee is trading at 86.56 against the US$.Gold prices for the latest contract on MCX are trading 0.5% higher at Rs 78,940 per 10 grams.Meanwhile, silver prices are trading 0.2% higher at Rs 91,650 per 1 kg.Here are five reasons why Indian Markets are falling today.#1 Uncertainty Over Trade PoliciesOn the very first day in office, Trump made several announcements, including tariffs on Canada and Mexico. Trump has threatened higher tariffs on several countries, including India. His immigration policies could also impact the Indian tech sector.#2 Caution Ahead of BudgetInvestors are now focused on this mega-policy event. Finance Minister Nirmala Sitharaman is set to present the Budget on Saturday, 1 February. Expectations are high that the government will announce measures to boost consumption, strengthen the rural sector, and support manufacturing and infrastructure, all while maintaining fiscal prudence.#3 FPI SellingA relentless selloff by foreign portfolio investors (FPIs) amid the strengthening US dollar and rising bond yields is a key factor behind the Indian stock market’s downtrend in recent months. Except for 2 January, FPIs have been selling Indian equities every day in January, offloading nearly Rs 510 bn as of 2 January.#4 Unimpressive Q3 EarningsAfter weak Q1 and Q2 earnings, the December quarter earnings so far have also been unimpressive, exhibiting mixed trends across sectors.#5 Weak Macro SentimentThe Indian economy is showing signs of weakness, which has contributed to the cautious sentiment in the market.
Why HAL Share Price is Falling?In news from the defence sector, shares of Hindustan Aeronautics are sharply lower by more than 2% in trade on 21 January, after an unconfirmed report by a defence news website cited a rock block to HAL’s deal with General Electric for the F-414 engine, meant for India’s Light Combat Aircraft Tejas.Defence Minister Rajnath Singh visited the US in August last year to strengthen and widen defence cooperation, amid issues around timely delivery of GE’s F-404 engines.The delays had reportedly been attributed to supply chain disruptions at GE Aerospace back then.Even in the past, there have been unconfirmed reports over delays in the supply of GE engines, threatening to have a cascading effect on the induction of HAL’s Light Combat Aircraft Tejas Mk-1A into the Indian Air Force.The timeline of LCA’s induction has been revised more than once since the original schedule was announced.
Suntech Realty Shares Zoom 10%Moving on to news from the realty sector, shares of Sunteck Realty skyrocketed over 10% on 21 January, buoyed by the company’s solid earnings performance in the December quarter.The real estate major jumped back into the black with a net profit of Rs 425 million (m), a massive turnaround from a loss of Rs 97 m in the year-ago period.The surge in net profit was also coupled with an over 2.5x jump in revenue to Rs 1,618 m, up from Rs 424 m in the same quarter last fiscal.The operational performance also remained strong, with an EBITDA margin of 29.9%.The company’s presales of Rs 635 crore in Q3, up 40% on the year.The growth was driven by the 66% contribution from Uber luxury and the 19% contribution from the premium luxury segments.Sunteck Realty also added the Nepean Sea project-2 with a total gross development value of Rs 24 bn.Shares of the real estate developer have been on a downtrend for the past three months, losing nearly 12% of its value as investors jumped on a profit-booking spree.
Why Gold Prices are RisingMoving on, gold prices rose for a second session on Tuesday as the dollar weakened, with markets evaluating the possible consequences of US President Donald Trump’s policies in his second term after his inauguration.Spot gold gained 0.6% to US$ 2,724.74 per ounce by 0240 GMT. US gold futures were 0.2% lower at US$ 2,742.50.The dollar was down about 1% after reports suggested any new taxes would be imposed in a “measured” way. A weaker dollar makes gold more attractive to foreign buyers.After weeks of global speculation over which duties Trump would impose tariffs on his first day in office, news that Trump would take more time on tariffs drove a relief rally in global stocks and pressured the US dollar.Trump had proposed tariffs of up to 10% on global imports, 60% on Chinese goods, and a 25% import surcharge on Canadian and Mexican products.
