Indian shares look set to extend recent losses on Wednesday after the S&P 500 posted its steepest loss since October overnight on concerns about the row over Greenland.
U.S. President Donald Trump shared altered images on his social media platform, Truth Social, that depict Greenland, Canada and even Venezuela as part of the United States – reigniting tensions over his Arctic strategy and territorial ambitions.
Hours before his speech at the World Economic Forum, which he is attending for the first time in six years, Trump warned the Nato alliance that it was only as strong as the United States allowed it to be.
Global funds are pulling back from American assets, with media reports suggesting that a Danish pension fund is planning to exit Treasuries by the end of the month.
Meanwhile, a jump in Japan’s borrowing costs to all-time highs rippled through major bond markets, adding to economic uncertainty in financial markets.
Japan’s government bond market liquidity deteriorated to record levels amid intensifying selling pressure due to concerns about Prime Minister Sanae Takaichi’s plans to cut taxes and boost spending.
Closer home, India’s benchmark indexes Sensex and Nifty slumped by 1.3 percent and 1.4 percent, respectively on Tuesday to extend losses for a second straight session on rising geopolitical and tariff tensions.
The rupee weakened by 7 paise to close at a record low of 90.97 against the U.S. dollar due to strong dollar demand from metal importers and continued foreign fund outflows.
Foreign institutional investors net sold shares worth Rs 2,938 crore on Tuesday, while domestic institutional investors net bought shares to the extent of Rs 3,666 crores, as per provisional data on exchange.
Asian markets were broadly lower this morning. Treasuries steadied and the dollar index was slightly lower, reflecting unease over erratic U.S. foreign policy.
Spot gold surged past the psychological milestone of $4800 an ounce for the first time while oil prices traded mixed as risks from Kazakh production halt subsided.
Overnight, U.S. stocks tumbled as investors weighed inflation risks amid escalating trade uncertainty.
Losses were widespread as President Trump doubled down on his bid take control of Greenland and threatened to impose trade tariffs on several European countries that oppose his plan, claiming the annexation of Greenland is key to national and world security.
The S&P 500 plummeted 2.1 percent, marking its steepest drop for the benchmark index since October. The Dow fell 1.8 percent and the tech-heavy Nasdaq Composite plunged 2.4 percent.
European stocks ended firmly in the red on Tuesday amid trade war jitters. The pan European Stoxx 600 declined 0.7 percent.
The German DAX lost 1 percent, France’s CAC 40 gave up 0.6 percent and the U.K.’ FTSE 100 shed 0.7 percent.
Business News
Indian Shares Set To Extend Losses After Wall Street Sell-off
2026-01-21 02:35:26
