January 19, 2026, Mumbai, India: Global Trade Tensions Spark Selloff in Equities While Bullion Prices Hit Record Highs
The Indian financial markets witnessed a turbulent start to the week on Monday as a wave of global uncertainty sent stocks tumbling and pushed precious metals to unprecedented price levels. Investors reacted sharply to fresh geopolitical developments and renewed trade tariff threats from the United States, which triggered a significant shift away from riskier assets toward traditional safe havens.
Equity indices in India felt the heat immediately, with the BSE Sensex dropping over 324 points to settle at 83,246.18, while the Nifty 50 slipped 108.85 points to close at 25,585.50. Market analysts pointed to the escalating concerns over international trade policies, specifically potential new tariffs targeting European nations, as the primary catalyst for the downward move. This nervousness was further compounded by domestic factors, including disappointing quarterly earnings from corporate heavyweights like Reliance Industries and ICICI Bank.
In contrast to the struggling stock market, the bullion segment experienced a historic rally. Gold prices in Mumbai surged to approximately 1,47,945 rupees per 10 grams, reflecting a massive appetite for security among investors. Silver witnessed even more dramatic gains, climbing over 5% in a single day to trade near 302,640 rupees per kilogram on the MCX. The rally in precious metals is being driven by a perfect storm of factors: persistent geopolitical friction in the Middle East, legal scrutiny surrounding the U.S. Federal Reserve, and a general cooling of global economic growth projections for the year.
The currency market also remained under pressure, with the Indian rupee trading around 90.94 against the U.S. dollar. While the greenback showed some signs of softening against other major currencies, persistent outflows of foreign funds from the Indian equity market kept the rupee on the back foot. Meanwhile, Brent crude oil prices showed a slight decline, trading near 62 dollars per barrel, as market participants weighed signals of oversupply against the risk of regional conflicts.
As the trading day concluded, the divergence between different asset classes underscored a growing sense of caution. With high-stakes economic events on the horizon and global trade relations in a state of flux, financial experts suggest that volatility is likely to remain a defining characteristic of the markets in the coming weeks.
Global Trade Tensions Spark Selloff in Equities While Bullion Prices Hit Record Highs
