Nifty may see worst January in a decade

The Nifty 50 index has declined 5.5 per cent from its January § record high of 26,373.20 and is likely to record its worst performance in a decade this month, data shows.

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The index is near its 200-day moving average (200-DMA), slipping 3.7 per cent in January. Its last record fall, of 4.8 per cent, was in January 2016. If the index continues falling, it will be the third biggest loss in January since 2011 when it had tumbled over 10 per cent, shows data.

Analysts attribute the fall to geopolitical and tariff-related developments. Geopolitics is redrawing business equations and threatens to affect geographical boundaries, according to analysts at Prabhudas Lilladher. Global events are causing business uncertainty and volatility, particularly for India, as a sustained tariff dispute with the United States and related developments disturb market momentum, they said.

“Given the current phase of geopolitical uncertainty, markets are likely to remain cautious. We have seen a huge outperform-ance by largecaps (16-17 per cent over the