Domestic equities extended losses for a third straight session on Wednesday as global shocks and weak earnings hit risk appetite. The Sensex fell over 1,000 points intraday, while the Nifty 50 slipped below 25,000 for the first time since October. Selling was broad-based, with IT, chemicals and consumer durables under sharp pressure. Banking and financial stocks stayed weak, while defensive sectors offered limited support. Equities were weighed down by renewed global uncertainty after President Donald Trump's remarks on Greenland, soft domestic earnings, a record-low rupee, and continued foreign investor selling.

The S&P BSE Sensex dropped 270.84 points or 0.33% to 81,909.63. The Nifty 50 index lost 75 points or 0.30% to 25,157.50. In three trading sessions, the Sensex slipped 1.99% while the Nifty declined 2.09%.

ICICI Bank (down 2.10%), HDFC Bank (down 1.10%) and Larsen & Toubro (down 1.06%) were major Nifty drags today.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index declined 1.01% and the S&P BSE Small-Cap index fell 0.80%.

The market breadth was weak. On the BSE, 1,437 shares rose and 2,831 shares fell. A total of 142 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, surged 8.24% to 13.78.

The Indian rupee fell to a record low of 91.19 against the US dollar on Wednesday, pressured by a stronger greenback as fresh tariff threats from US President Donald Trump over Greenland fueled global risk aversion.

World Economic Forum:

At the 56th World Economic Forum (WEF) annual meeting in Davos, the Adani Group on Wednesday outlined a $66 billion investment blueprint for Maharashtra, spanning aviation, clean energy, urban infrastructure, digital platforms and advanced manufacturing, positioning itself as a long-term partner in the state's infrastructure-led growth agenda.

U.S. President Donald Trump arrived in Davos on Wednesday (21 January 2026) for high-level engagements with European leaders, with his renewed push on Greenland adding to tensions within the transatlantic alliance.

Meanwhile, European Commission President Ursula von der Leyen, in a special address on Tuesday (20 January 2026), said the European Union is close to finalizing a landmark trade agreement with India. She described the pact as the mother of all deals, noting it could create a market encompassing nearly two billion people, or about one-fourth of global GDP.

Numbers to Track:

The yield on India's 10-year benchmark federal paper was down 0.16% to 6.662 as compared with the previous close of 6.673.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 91.6850 compared with its close of 90.9700 during the previous trading session.

MCX Gold futures for 5 February 2025 settlement jumped 4.69% to Rs 1,57,619.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.05% to 98.49.

The United States 10-year bond yield declined 0.33% to 4.281.

In the commodities market, Brent crude for March 2025 settlement lost 43 cents or 0.66% to $64.49 a barrel.

Global Markets:

European shares traded lower on Wednesday as investors awaited U.S. President Donald Trump's address at the World Economic Forum later in the day.

Most Asian shares ended lower, while gold jumped to a record high level after U.S. President Donald Trump threatened fresh tariffs on countries resisting the transfer of Greenland to the United States.

Spot gold prices rose over 1% to an all-time high of $4,813 per ounce as investors rushed into safe haven assets.

On Saturday, Trump said that exports from eight European countries would face tariffs of 10% from Feb. 1, rising to 25% by June 1 if talks fail to deliver U.S. control of mineral-rich Greenland.

He also threatened to slap 200% tariffs on French wine and champagne, following reports that President Emmanuel Macron was unwilling to join his proposed 'Board of Peace.'

Trump further criticized the U.K., calling its plan to transfer sovereignty of the Chagos Islands, which is home to a joint U.K.-U.S. military base, to Mauritius an 'act of great stupidity,' citing the move as further justification for acquiring Greenland on national security grounds.

European leaders have labeled President Donald Trump's latest tariff threats unacceptable and are reportedly weighing retaliatory measures.

France is said to be urging the European Union to deploy its strongest economic response tool, the so-called Anti-Coercion Instrument.

Overnight in the U.S., the Dow Jones Industrial Average shed 870.74 points, or 1.76%, to end the session at 48,488.59. The S&P 500 dipped 2.06% to settle at 6,796.86. The Nasdaq Composite slid 2.39%, closing at 22,954.32.

It was the worst session since October for all three major averages. U.S. Treasury yields spiked and the U.S. dollar declined as Trump's threat caused a flight from U.S. assets.

New Listing:

Shares of Amagi Media Labs ended at Rs 348 on the BSE, a discount of 3.60% as compared with the issue price of Rs 361.

The stock debuted at Rs 317, a discount of 12.19% to the issue price. The stock has hit a high of 357.50 and a low of 317. On the BSE, over 18.97 lakh shares of the company were traded in the counter.

Stocks in Spotlight:

Persistent Systems declined 1.57% after the company reported a 6.79% decline in consolidated net profit to Rs 439.4 crore despite of 5.52% increase in revenue from operations to Rs 3778.20 crore in Q3 FY26 over Q2 FY26.

IndiaMart InterMESH jumped 5.73% after the company's consolidated net profit climbed 55.62% to Rs 188.3 crore on a 13.35% increase in revenue from operations to Rs 401.6 crore in Q3 FY26 over Q3 FY25.

Shoppers Stop tanked 5.86% after the company's standalone profit slipped 74.14% to Rs 12.61 crore in Q3 FY26, compared with Rs 48.78 crore in Q3 FY25. Revenue from operations marginally rose 0.71% year on year (YoY) to Rs 1,320.85 crore in Q3 FY26.

SRF tumbled 6.56%. The company reported a 59.60% surge in consolidated net profit to Rs 432.66 crore in Q3 FY26, compared with Rs 271.08 crore in Q3 FY25. Total revenue from operations rose 6.33% year on year (YoY) to Rs 3,712.53 crore in the quarter ended 31 December 2025.

Rallis India rose 2.34%. The company's standalone net profit tanked 81.81% to Rs 2 crore in Q3 FY26 as against Rs 11 crore posted in Q3 FY25. However, revenue from operations rose 19.34% year on year (YoY) to Rs 623 crore in Q3 FY26, driven primarily by strong volume growth across businesses.

KPI Green Energy fell 1.77%. The company's consolidated net profit jumped 47.73% to Rs 125.80 crore in Q3 FY26, compared with Rs 85.15 crore in Q3 FY25. Total revenue for Q3 FY26 stood at Rs 676 crore, up 45% year-on-year from Rs 466 crore in Q3 FY25, driven by accelerated project execution and strong performance across key business segments.

Vikram Solar tumbled 8.52% after the company reported a 25.2% decline in consolidated net profit to Rs 96.1 crore on a 0.36% fall in revenue from operations to Rs 1,105.95 crore in Q3 FY26 over Q2 FY26.

Supreme Petrochem rose 1.62%. The company's standalone net profit fell 57.74% to Rs 30.15 crore on a 10% fall in revenue from operations to Rs 1,264.69 crore in Q3 FY26 over Q3 FY25.

K.P. Energy fell 1.70%. The company reported a 56.68% jump in consolidated net profit to Rs 41.35 crore on a 62.83% surge in revenue from operations to Rs 344.96 crore in Q3 FY26, compared with Q3 FY25.

IPO Update:

The initial public offer (IPO) of Shadowfax Technologies received bids for 5,30,88,480 shares as against 8,90,88,807 shares on offer, according to stock exchange data at 16:45 IST on Wednesday (21 January 2026). The issue was subscribed 0.60 times.

The issue opened for bidding on Tuesday (20 January 2026) and it will close on Thursday (22 January 2026). The price band of the IPO is fixed between Rs 118 and 124 per share. An investor can bid for a minimum of 120 equity shares and in multiples thereof.

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