Sensex down 1,065 points, Nifty tanks over 1.2% amid rising geopolitical tensions

The market capitalisation, or the total value of all listed shares, of the BSE-listed firms declined by Rs 9.86 lakh crore to Rs 455.82 lakh crore.

“Markets extended their weakness on Tuesday and ended lower amid broad-based selling and weak global cues,” said Ajit Mishra, senior VP (Research) Religare Broking Ltd.

Last week, US President Donald Trump threatened to impose 10 per cent tariffs on eight European countries — including Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland — that have opposed his plan to acquire Greenland, effective February 1. The levy will increase to 25 per cent on June 1. The announcement has revived uncertainty around global trade, market participants said.

Domestic markets remained cautious ahead of the US Supreme Court’s ruling on Trump-era tariffs, with renewed uncertainty over US trade policy prolonging the recent consolidation.

“Continued FPI outflows, rising US and Japanese bond yields, and a weakening rupee weighed on investor confidence,” said Vinod Nair, head of research, Geojit Investments Ltd.

Market sentiment also remained subdued due to mixed corporate earnings.

Selling was widespread, with realty, auto and IT stocks among the key laggards, while banking stocks offered limited support. The broader market witnessed sharp pressure, with both midcap and smallcap indices declining by over 2.5 per cent, reflecting heightened risk aversion and a lack of conviction across segments.

Nifty Bank declined 0.81 per cent. Nifty sectoral indices took a beating, with Nifty Realty leading the loss at 5 per cent. Nifty Auto followed with a 2.48 per cent slide, Nifty IT declined 2.06 per cent, and Nifty Pharma dropped 1.91 per cent. India VIX jumped 7.63 per cent to close at 12.73, indicating heightened market uncertainty.

The NSE companies that declined the most included Adani Enterprises (3.96 per cent), Bajaj Finance (3.89 per cent), Jio Financial Services (3.72 per cent), Eternal Ltd (3.59 per cent) and Coal India Ltd 3.29 per cent).

In the near term, market sentiment will hinge on the earnings season, while geopolitical developments and global trade conditions remain important influences.