The SGX Nifty January 2026 futures experienced a decline of 21.00 points, indicating a negative start for the Nifty 50 today.
Institutional Flows:
On 19 January 2026, provisional data indicated that foreign portfolio investors (FPIs) divested shares amounting to Rs 3,262.82 crore, whereas domestic institutional investors (DIIs) recorded net purchases totaling Rs 4,234.30 crore in the Indian equity market. In January, the foreign institutional investors have divested shares amounting to Rs 29,315.22. Their cash sales amounted to Rs 34,349.62 crore in December and Rs 17,500.31 crore in November.
Global Markets:
Asian stocks experienced a decline on Tuesday, driven by a renewed wave of trade-war concerns that negatively impacted risk sentiment and triggered selling in U.S. assets. Meanwhile, Japan’s Nikkei experienced a decline as investors anticipated next month’s election. Prime Minister Sanae Takaichi is pursuing voter support for enhanced expenditure, reductions in taxes, and a fresh security strategy anticipated to expedite a defense expansion.
The initiative by U.S. President Donald Trump to assert control over Greenland through the threat of increased tariffs is likely to exacerbate trade tensions with Europe. This development has created a climate of uncertainty in the markets, prompting investors to seek refuge in safe-haven assets such as the Swiss Franc and gold. The current tensions have reignited discussions surrounding the ‘Sell America’ trade that surfaced following the extensive “Liberation Day” tariffs implemented last April, prompting investors to divest from U.S. equities, the dollar, and Treasuries. The trade seemed to be gaining traction during the Asian trading hours on Tuesday. Trump’s threats prompted a significant response in Europe, and his comments have cast doubt on the future of trade agreements established since that time with Europe.
Attention is now focused on Davos, where Trump is anticipated to engage with global business leaders on Wednesday, as the U.S. president’s presence significantly influences the annual assembly of the world’s elite in Switzerland. The U.S. cash equity markets observed a closure on Monday in observance of Martin Luther King Jr. Day.
Domestic Market:
Equity benchmarks experienced a decline on Monday as investor sentiment grew cautious due to renewed global trade tensions and disappointing earnings reports from major index constituents. The Nifty has fallen below the 25,600 level, influenced by declines in energy stocks. Market participants experienced unease following US President Donald Trump’s warning of new tariffs on eight European nations due to their resistance to his Greenland proposal. This development heightened concerns about a potential escalation in global trade conflicts, resulting in increased volatility across international markets.
Market sentiment faced additional pressure due to uncertainty surrounding the next chair of the US Federal Reserve, as Trump indicated that Kevin Hassett might remain in his position, which has moderated expectations for significant rate cuts in 2026. Back home, ongoing foreign institutional selling impacted sentiment, as FIIs continued to be net sellers for the ninth consecutive session. The market sentiment was adversely affected by disappointing earnings for the December quarter. Wipro’s cautious outlook for the March quarter contributed to the overall sense of restraint. ICICI Bank faced challenges following the announcement of provisions for bad loans that exceeded expectations. The S&P BSE Sensex declined by 324.17 points, representing a decrease of 0.39%, closing at 83,246.18. The Nifty 50 index experienced a decrease of 108.85 points, reflecting a decline of 0.42%, closing at 25,585.50.