Summary of this article
Indian markets face a negative start following a global selloff, with the Sensex down 1065.71 points and Nifty falling 1.38 per cent.
Investors are tracking the India-EU trade deal, termed the mother of all deals, which aims to create a massive market for 2 billion people.
Market volatility is rising due to Europe’s trade bazooka and Q3 results from major companies like HPCL and Dr. Reddy’s.
On January 21, the headline indices are likely to start the session on a negative note following selloffs in the global markets. The Gift Nifty opened lower at 25,218 down by nearly 21.5 points, the benchmark Nifty is expected to track the dip.
On January 20, the headline indices witnessed significant declines. The BSE Sensex finished the session around the 82,180.47 level down by 1065.71 points or 1.28 per cent. On the other hand, the Nifty 50 ended the session at 25,232.50 down by 353 points or 1.38 per cent.
Stock Market Cues For Today
On January 21, news related to the European Union-India trade deal, surge in gold and silver prices, crude oil prices, and the announcement of Q3FY26 results are set to impact market sentiment :
India-European Union Trade Deal
European Commission President Ursula von der Leyen announced on January 20, 2026 that India and the European Union are close to signing a trade deal. Leyen called the deal the ‘mother of all deals'. She added that the deal is expected to create a market for 2 billion people or about one-fourth of the global GDP. Notably, India and the EU are slated to announce the conclusion of negotiations at the India-EU summit on January 27, 2026. Prior to the announcement European Commission President Ursula von der Leyen and President of the European Council, Antonio Costa will visit New Delhi on January 26 for Republic Day celebrations as chief guests and hold summit talks with Prime Minister Narendra Modi.
Europe’s Trade Bazooka
According to a report by CNBC, Europe is considering bringing out its trade bazooka and imposing tariffs worth 93 billion euros ($108 billion) on the U.S. The consideration follows US President Donald Trump’s threat to impose additional tariffs on eight European countries if a deal over the sale of Greenland to the US is not reached. Earlier on January 20, France urged the EU to use its ‘Anti Coercion Instrument’. The development is expected to increase volatility on D-street as investors turn uncertain amid the rising threat of a trade war between the largest economies of the world.
Crude Oil Prices Today
On January 21, crude oil prices traded in the red as the price of West Texas Intermediate was around $59.81 down by $0.55 or 0.91 per cent. The price of Brent Crude was around $64.21 down by $0.71 or 1.09 per cent in the early hours of the day.
Gold Prices On January 21
Physical gold prices edged upwards in the early hours of January 21 as the price of 24 karat gold was Rs 14,979 per gram, the price of 22 karat purity gold was around Rs 13,731 per gram and the price of 18 karat gold was around Rs 11,235 per gram.
Q3 Results
On January 21 as many as 57 companies are scheduled to announce their results today. Some of the major companies set to announce their results today include Eternal, Hindustan Petroleum (HPCL), Dr. Reddy’s Laboratories, Bank of India (BOI), PNB Housing Finance and Jindal Stainless.
Asian Indices Trade Mixed
On January 21, major Asian indices traded in the red in the early hours of the session. The Nikkei 225, the Shanghai Composite and the Hang Seng traded with declines of 0.31 per cent, 0.14 per cent and 0.07 per cent respectively. On the other hand, the KOSPI traded higher by 0.16 per cent.
US Markets
US market indices closed the session with losses on January 20. The Nasdaq Composite closed with a decline of 2.39 per cent. On the other hand, the S&P 500 and the Dow Jones Industrial Average (DJIA) closed lower by 2.06 per cent and 1.76 per cent respectively.
