Stock Market Crashes Again: Sensex Dips 490 Pts, Nifty Fell 151 Pts; What Is Impacting Stocks On Thursday?

Stock Market Crash: The Indian stock market once again crashed by steeper levels with Sensex and Nifty 50 plummeting by 490 points and 151 points respectively. The market is bearish ahead of major Q3 earnings such as TCS and Tata Elxsi on Thursday. Another key reason is that the market is bracing for the impact of Trump's swearing as White House's 47th President which is expected to influence global trends.

Sensex Crash:

Sensex nosedived by 479.77 points to hit an intraday low of 23,688.95. At the time of writing, the benchmark traded at 77,754.85, lower by 393.64 points or 0.50%. The benchmark pulled back after opening at 78,206.21 which was its intraday high as of now on January 9.

Nifty Crash:

Nifty 50 also witnessed massive selling pressure. The index dropped by 151 points to hit an intraday low of 23,537.95. It is currently trading at 23,553.25, down by 135.70 points or 0.57%, after opening at 23,674.75 and hitting an intraday high of 23,537.95.

Stocks like HUL, Kotak, ITC, Nestle, and M&M were top gainers, surging by 1% to 2.5%. However, stocks like L&T, Axis Bank, Tata Steel, Tata Motors, HDFC Bank, and Bajaj Finance dragged the market with a downside of 1% to 2%.

TCS was down by 1%, on the other hand, Tata Elxsi shares surged by over 2% ahead of their Q3FY25 results later in the day.

What is impacting the market?

Vikram Kasat, Head - Advisory, PL Capital - Prabhudas Lilladher said, Broken Momentum in the US for the third week in a row, we're on the verge of a midweek break from trading. The off days seem to be robbing the stock market of some vitality."

Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, So far in January FIIs have sold equity for Rs 10419 crores. With the dollar index at 109 and the 10-year bond yield at 4.67% FIIs are likely to continue with their selling strategy putting pressure on the market in the near term.

Geojit's expert further added, that with the Q3 results season starting today there will be a market reaction to results. The results of TCS will give an indication of what is in store for the IT sector. The strength of the U.S. economy and the depreciation of the rupee will be tailwinds for the IT sector.

Additionally, Premium segments like hotels, jewellery, automobiles catering to the premium market and airlines are likely to report good numbers. Expectations from President Trump's policy decisions and the Indian Union budget proposals will keep the market volatile in the coming days, Vijayakumar said.

Also, Ross Maxwell, Global Strategy Operations Lead, VT Markets said, a second Trump administration could significantly reshape Asia's economic landscape, particularly through its trade policies and protectionism. Countries like China, Japan, South Korea, and Vietnam, which rely heavily on US trade, could face challenges as the US continues to prioritize American interests with tariffs and trade agreements. Trump's "decoupling" from China could lead to shifts in production and sourcing strategies, with Southeast Asia-especially Indonesia, Malaysia, and Thailand-potentially benefiting from increased foreign investment as companies diversify their supply chains.

In the tech sector, Maxwell said that Trump's immigration policies could impact Asia's access to skilled labor. Stricter US immigration laws may lead to more tech talent staying in Asia, which could boost regional innovation hubs in countries like India, Singapore, and South Korea. This shift may also benefit fintech companies, including smaller players like Block Inc. and those investing in blockchain technology, such as Visa and Amazon.

Lastly, Maxwell added, Asia's economies may face volatility due to Trump's trade wars and tariffs, but some sectors-like tech and defense (e.g., Lockheed Martin)-could thrive. With a "risk-on" sentiment emerging, investors may turn to higher-reward opportunities like smaller fintech startups and the growing crypto market, while avoiding sectors exposed to tariffs and global trade disruptions. In short, a second Trump term could offer new opportunities for Southeast Asia and emerging markets but create risks for export-driven economies and industries reliant on international talent.