Although the benchmark indices opened flat, they traded negatively throughout the session and ultimately closed red.

Indian equity benchmarks, Sensex and Nifty50, extended losses on Tuesday, closing sharply lower amid heavy selling across sectors as investors weighed escalating global tensions. Stock-specific moves also continued amid the ongoing Q3 earnings season.

At the closing bell, the BSE Sensex closed lower by 1,066 points (down 1.3%).

Meanwhile, the NSE Nifty closed 353 points lower (down 1.4%).

HDFC Bank, SBI are among the top gainers today.

Sun Pharma, Eternal, and Bajaj Finance, on the other hand, were among the top losers today.

The GIFT Nifty was trading at  25,225, lower by 312 points at the time of writing.

The BSE MidCap index ended 0.5% lower, and the BSE SmallCap index ended 2.7% lower.

Sectoral indices are trading mixed today, with stocks in the oil & gas sector and realty sector witnessing selling pressure. Meanwhile, stocks in the auto sector and services sector witnessed buying.

The rupee is trading at Rs 90 against the US$.

Gold prices for the latest contract on MCX are trading 3% higher at Rs 149,416 per gram.

Meanwhile, silver prices were trading 4% higher at Rs 321,573 per 1 kg.

Five reason why Indian share market is falling:

#1 Trade war fears

Investors are worried about rising tensions after US President Trump threatened to acquire Greenland and impose tariffs on eight European countries. The EU is reportedly considering retaliatory tariffs on $108 billion of US goods, keeping markets uncertain in the near term.

#2 Mixed Q3 earnings

So far, Q3 results have been mixed, partly due to the one-time impact of new labour laws. While earnings are mostly stable, the lack of positive surprises has failed to lift market sentiment.

#3 Heavy FII selling

Foreign investors have been selling Indian stocks aggressively, with over Rs 290 bn sold in January so far. This selling is pressuring the market amid trade uncertainty, a weak rupee, and valuation concerns.

#4 Money flowing to safe-haven assets

Geopolitical risks are pushing investors away from risky equities toward safe-haven assets like gold and silver. Record-high prices in precious metals are attracting investments as a hedge against uncertainty.

#5 Union Budget 2026 in focus

Markets are cautious ahead of the 1 February 2026 Budget, expecting measures to boost growth, jobs, and consumer demand. Investors remain wary that excessive focus on fiscal consolidation could reduce government spending on capital projects.
 

NCLAT Approves Adani Power's Vidarbha Plan

In the news from power sector, The National Company Law Appellate Tribunal (NCLAT), Delhi, has approved Adani Power's Rs 40 billion (bn) resolution plan for Vidarbha Industries Power Limited (VIPL), rejecting appeals from Western Coalfields Limited and VIPL employees.

These appeals had challenged an earlier NCLT, Mumbai order that had approved Adani Power's plan.

NCLAT stated that the plan meets all legal requirements and that the Committee of Creditors acted within its rights.

The ruling finalizes the resolution of the 600 MW power plant at Butibori in Nagpur, Maharashtra.
 

HPCL Signs 10-Year LNG ADNOC Deal

Moving on to the news from oil & gas sector, shares of Hindustan Petroleum Corporation Limited (HPCL) came into focus on Tuesday following a major long-term energy agreement.

HPCL has signed a 10-year deal with Abu Dhabi Gas Liquefaction Company (ALNG), a subsidiary of ADNOC Gas, to procure liquefied natural gas (LNG).

The deal highlights growing economic ties between India and the UAE and emphasizes LNG's role in supporting India's energy transition.

The LNG supplies will arrive at HPCL's 5 million tonne per year storage and regasification terminal in Chhara, Gujarat.

The gas will be used not only for HPCL's refineries and City Gas Distribution network but also to meet demand in key industries like fertilizers, power, petrochemicals, and others.

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