At 11:30 ST, the barometer index, the S&P BSE Sensex, dropped 645.67 points or 0.79% to 81,527.66. The Nifty 50 index lost 199.65 points or 0.79% to 25,035.10.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index tumbled 1.66% and the S&P BSE Small-Cap index fell 1.70%.

The market breadth was weak. On the BSE, 872 shares rose and 3,114 shares fell. A total of 156 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, surged 9.05% to 13.88.

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.

IPO Update:

The initial public offer (IPO) of Shadowfax Technologies received bids for 4,79,53,080 shares as against 8,90,88,807 shares on offer, according to stock exchange data at 11:30 IST on Wednesday (21 January 2026). The issue was subscribed 0.54 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.

Buzzing Index:

The Nifty Private Bank index declined 1.44% to 27,995.55. The index dropped 2.42% in the three consecutive trading sessions.

ICICI Bank (down 2.34%), IDFC First Bank (down 2.33%), Axis Bank (down 1.41%), Kotak Mahindra Bank (down 1.3%) and HDFC Bank (down 1.22%), Federal Bank (down 0.86%), IndusInd Bank (down 0.75%) declined.

Stocks in Spotlight:

Supreme Petrochem declined 1.47% after the company’s standalone net profit fell 57.74% to Rs 30.15 crore on 10% fall in revenue from operations to Rs 1,264.69 crore in Q3 FY26 over Q3 FY25.

Persistent Systems declined 4.32% 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 3% after the company’s consolidated net profit climbed 55.62% to Rs 188.3 crore on 13.35% increase in revenue from operations to Rs 401.6 crore in Q3 FY26 over Q3 FY25.

Global Markets:

Asian market traded lower on Wednesday, 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.