Indian shares fell to their lowest levels in more than three months on Tuesday, as a broad-based sell-off driven by weak corporate earnings, global trade concerns and sustained foreign fund outflows rattled investor confidence.

The benchmark Nifty 50 slipped 1.38% to close at 25,232.5, while the BSE Sensex declined 1.28% to 82,180.47, both marking their weakest closing levels in over three months.

The sell-off was accompanied by a sharp spike in volatility, with the India VIX jumping nearly 8%, signalling expectations of continued market turbulence in the near term.

Broad-based sell-off hits large and small caps

The decline was not limited to frontline indices.

Broader markets bore the brunt of the selling, with small-cap and mid-cap indices tumbling 2.9% and 2.6% respectively.

The small-cap index closed at its lowest level in eight months, while mid-caps slipped to a three-month low, reflecting growing risk aversion among investors.

Market breadth turned decisively negative, with all 16 major sectoral indices ending in the red.

Only 28 stocks in the Nifty 500 managed to close higher, underlining the intensity of the sell-off.

“Valuations are being reset,” said Dharmesh Kant, head of equity research at Chola Securities.

He noted that while a few companies stood out, most Nifty 50 firms reporting December-quarter earnings had fallen short of expectations.

IT and heavyweight stocks drag indices lower

Information technology stocks led the losses, with the IT index sliding 2.1% to become the worst-performing sector of the day.

Analysts said margins across the sector have come under pressure following the implementation of new labour codes, denting profitability.

LTIMindtree plunged 6.7% after reporting a decline in quarterly profit, while Wipro fell 2.5%, extending losses from the previous session on a weak fourth-quarter outlook.

Heavyweight stocks also weighed on the benchmarks.

Reliance Industries dropped 1.4%, extending Monday’s decline after the company posted third-quarter earnings below market expectations.

ICICI Bank, another index major, also disappointed investors with weaker-than-expected results.

Global trade worries and foreign selling deepen gloom; budget adds to jitters

Sentiment remained fragile amid global uncertainties, particularly after US President Donald Trump threatened additional tariffs on eight European Union members, reviving fears of a wider trade confrontation.

At home, continued selling by foreign institutional investors added to the pressure.

Overseas investors have sold Indian equities worth around $3 billion so far in January, marking the heaviest monthly outflows since August.

The Nifty 50 has ended lower in nine of the 13 trading sessions this month.

Market participants are also cautious ahead of the federal budget on February 1, with high expectations that the government will announce measures to boost economic growth, job creation and consumer demand.

While policymakers are expected to strike a balance between growth and fiscal discipline, concerns that tighter fiscal consolidation could curb capital expenditure have unsettled investors.

“Continued selling by foreign investors and the absence of a broad-based rally ahead of the Union Budget have kept investors on edge,” said Aamar Deo Singh, senior vice president at Angel One.

Near term volatility to continue; analysts assess technical levels

Analysts say volatility in the market is likely to continue in the near-term.

“The volatility in the market is likely to continue in the near-term till some clarity emerges regarding the US-Europe standoff on Greenland tariffs. Since both sides have hardened their positions, the uncertainty will continue for some time,” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

Technical analysts warned that the near-term outlook remains weak unless key resistance levels are reclaimed.

According to Sudeep Shah, head of technical and derivatives research at SBI Securities, the 25,370–25,400 zone now acts as a critical resistance area for the Nifty.

“As long as the index trades below 25,400, broader sentiment is likely to remain weak,” Shah said.

He added that a failure to hold support around 25,080 could push the index towards 24,900 in the short term.

Rupak De, senior technical analyst at LKP Securities, said bears had regained control amid ongoing transatlantic trade tensions.

Indicators remain in bearish territory and are nearing oversold levels, with the index drifting towards its 200-day moving average.

Immediate support is seen around 25,100–25,150, where a short-term pullback could emerge if the level holds.

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The Hang Seng Index pulled back on Monday, reaching a low of H$26,628, down from this year’s high of H$27,165, after China published the latest GDP data and other macro data. It remains much higher than last year’s low of H$19,220.

China’s GDP growth rate hits target, but slows in Q4

The Hang Seng Index and other Chinese indices remained on edge on Monday as investors digested the latest macro data, which showed that the economic growth hit the 5% target in 2025, even as it faced the challenge of the United States tariffs. This growth was higher than what many analysts, including World Bank, predicted.

Data published by the National Statistics Bureau (NBS) showed that the House Price Index (HPI) retreated by 2.7% in December after slowing by 2.4% in the previous month.. China’s housing sector has never recovered since the collapse of top companies like Evergrande.

More data showed that the retail sales growth eased to 0.9% in December from 1.3% in November, while industrial production rose by 5.2% during the month.

As a result, the economy expanded by 4.5%  in the fourth quarter, a big deceleration from the previous 4.8%.  This deceleration was mostly because of a drop in fixed asset investments as Beijing moved to clear hidden debt and reduce excess competition.

Another red flag for the country was that deflation continued for 11 quarters, while birth rates plunged to the lowest level in years.

Still, the country managed to hit its 5% annual target last year, and Beijing expects that the growth will accelerate later this year.

China’s growth was mostly driven by trade, which accelerated as more foreigners bought its products. While exports to the United States dropped in 2025, trends to other regions like Africa and South America surged during the year. Its trade surplus jumped to $1.2 trillion during the year.

Top gainers and laggards in the HSI Index 

The Hang Seng Index retreated after the latest Chinese data as concerns about geopolitics remained following Donald Trump’s decision to slap tariffs on some key NATO allies.

Most companies in the Hang Seng were in the red on Monday, with Wuxi Biologics falling by 5%. Innovent Biologics, Hansoh Pharmaceutical, Sino Biopharmaceutical, and WuXi AppTec were the top laggards as they plunged by over 4% on Monday.

The other top laggards in the Hang Seng Index were companies like Zhongsheng Group, New Oriental Education, Alibaba Group, Kuaishou Technology, and China Resources Land, which fell by over 2.6%.

On the other hand, Li Ning, China Mengniu Dairy, Baidu, and China Hongkiao were the best gainers.

Hang Seng Index technical analysis 

The daily timeframe chart shows that the Hang Seng Index has hit a brick wall at H$27,165, its highest level in October and November last year, and in January this year. It has struggled to move above that level, a sign that bulls are hesitant to place bids.

The index has remained above the 50-day and 100-day Exponential Moving Averages (EMA). Therefore, the most likely Hang Seng Index forecast is neutral for now. 

More upside will be confirmed if it moves above the key resistance level at H$27,164. A move above that level will point to more gains, potentially to the strong pivot, reverse level of the Murrey Math Lines tool at H$27,343.

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Netflix (NASDAQ: NFLX) is broadly expected to report a strong quarter on Jan. 20, driven largely by the final season of “Stranger Things” that pulled back lapsed subscribers and kept engagement high throughout the holiday period.

Consensus is for the streaming giant to earn 55 cents on a per-share basis in its Q4 – up an exciting 28% year-on-year. Its revenue is also seen climbing to $12 billion in the fourth quarter.

Yet, for investors that have been wary of the uncertainty surrounding NFLX’s attempt to purchase Warner Bros. Discovery assets already, what’s more important is whether this company can sustain momentum now that the Stranger Things tailwind is over.

At the time of writing, Netflix shares are down some 33% versus their 52-week high as investors wait and watch how the WBD situation develops, especially now that Paramount has sued Warner Bros. Discovery for picking NFLX’s bid over its own, which it asserts is actually “superior”.

What’s next for Netflix stock after Stranger Things?

According to Wedbush’s senior analyst Alicia Reese, however, the quarterly strength investors will likely see from Netflix on the coming Tuesday is far from temporary, or driven mostly by Stranger Things only.

Wedbush’s recent survey confirms subscriber numbers remained steady in the fourth quarter even after that TV show ended, she told CNBC in a recent interview.

In fact, a significant number of subscribers who had been away for at least three months “returned” to NFLX in recent months – and not just for Stranger Things.

Many of them returned to catch up on other buzzy titles like “Bridgerton” or the upcoming “WWE” content on the streaming platform, Reese added.

The Wedbush analyst emphasized that Netflix’s massive content library ensures quarter-on-quarter engagement, making it less vulnerable to single-title fatigue.

In her view, the company’s content pipeline and subscriber loyalty point to a durable growth story, which warrants buying NFLX stock at current levels.

Are NFLX shares still a money maker?

Alicia Reese continues to see Netflix stock as a “money maker with or without the WBD assets”. On the CNBC interview, she especially pointed to the massive advertising opportunity that remains overlooked by the market.

Reese described Netflix’s ad load as “the lowest of any streamer or of course any linear TV,” which makes the experience far less intrusive for viewers.

According to Wedbush’s survey data, retention among ad-tier subscribers has been improving each quarter, with fewer customers switching away. “People don’t mind,” Reese said, adding that Netflix has room to slightly increase ad load without alienating users.

The profitability of this tier is already evident, and advertisers are flocking to the platform thanks to Netflix’s data leverage and partnerships with Amazon and other demand-side platforms.

For Netflix, the ad tier is not just a side experiment – it’s becoming a “core driver” of sustainable revenue growth.

And if the Warner Brothers deal does go through, she expects production to ramp up across both studios, further enhancing Netflix’s ad leverage.

All in all, for investors willing to look past short-term noise, Reese said Netflix stock remains worth owning in 2026.

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China’s economy lost momentum toward the end of 2025 even as it met the government’s annual growth target, underscoring an increasingly uneven expansion driven by exports and industrial output while domestic demand continued to lag.

Gross domestic product grew 4.5% in the fourth quarter from a year earlier, the slowest pace since the reopening from Covid lockdowns in late 2022, according to data released Monday by the National Bureau of Statistics.

That marked a deceleration from 4.8% growth in the third quarter.

For the full year, GDP expanded 5%, matching Beijing’s target of “around 5%” and confirming an estimate previously given by President Xi Jinping.

Chinese onshore stocks edged up slightly after the data release, while government bonds and the yuan were little changed, reflecting markets’ tempered response to growth that met expectations but showed signs of strain beneath the surface.

Domestic demand drags on growth

While industrial production remained resilient, key indicators of domestic demand deteriorated more than forecast at the end of the year.

Retail sales rose just 0.9% in December from a year earlier, missing expectations for 1.2% growth and slowing from 1.3% in November.

Fixed-asset investment contracted 3.8% in 2025, worse than economists’ forecasts, as the prolonged real estate downturn deepened.

Consumer spending and business investment have been weighed down by a weak jobs market and falling home prices.

The urban unemployment rate held steady at 5.1% in December, offering little sign of improvement in labor conditions.

“Despite achieving the 5% growth target, China’s economy actually posted weaker on-year growth one quarter after another in 2025, which shows domestic demand is still weak,” said Larry Hu, head of China economics at Macquarie Group.

“The most important thing is not the headline growth, but whether China can break away from the current two-speed growth.”

Exports and industry prop up activity

Manufacturing and exports continued to provide crucial support to the economy in 2025, helping Beijing avoid large-scale stimulus despite mounting headwinds.

Industrial output rose 5.2% in December, beating expectations and accelerating from the previous month.

Net exports contributed about a third of economic growth last year, according to NBS head Kang Yi, the highest share since 1997.

China also posted a record trade surplus of nearly $1.2 trillion, driven by strong shipments to non-US markets as exporters sought to diversify amid global trade frictions.

“Plunging investment and weak household consumption have made the Chinese economy increasingly reliant on exports to power growth, a situation that is untenable for China as well as the world economy,” said Eswar Prasad, a professor of trade policy and economics at Cornell University.

Policy challenges and demographic pressures

Looking ahead, economists anticipate that the uneven growth pattern will persist into 2026.

Beijing has signaled a greater willingness to support consumers, but remains cautious about unleashing massive stimulus due to concerns over local government debt.

The outlook is further complicated by deepening demographic challenges.

China’s birthrate fell to 5.6 births per 1,000 people in 2025, the lowest since 1949, while total population declined for a fourth straight year.

A shrinking workforce and aging population threaten long-term growth and add pressure to the pension system, even as policymakers roll out incentives to encourage higher fertility.

As China aims to become a moderately developed economy by 2035, policymakers face the difficult task of sustaining growth while rebalancing the economy toward stronger domestic demand in an increasingly protectionist global environment.

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Crypto mining hardware maker Canaan Inc. has received a warning from Nasdaq after its share price fell below the exchange’s minimum requirement, putting the company at risk of delisting unless it can regain its stock price within the next six months.

The Nasdaq contacted Canaan on Wednesday to notify the company that it was no longer meeting listing standards, as its shares had closed below $1 for 30 consecutive business days.

Canaan disclosed the notice in a statement on Friday, noting that it now has 180 days — until July 13 — to bring its closing bid price back above the threshold.

To regain compliance, the company’s shares must close at or above $1 for at least 10 consecutive trading days.

Canaan’s stock last closed above $1 on Nov. 28.

On Friday, shares ended trading at $0.79, down 3.8% on the day and roughly 63% lower over the past 12 months.

Nasdaq warning highlights prolonged share price slump

The warning comes amid sustained pressure on Canaan’s stock, which has not traded above $3 since December 2024.

The company, which manufactures specialized hardware used for Bitcoin mining, has faced a challenging environment as parts of the crypto mining industry adjust to changing market dynamics.

Canaan said the Nasdaq warned it was not in compliance with listing rules because its shares’ closing bid price had remained below $1 for an extended period.

Under Nasdaq rules, failure to meet the minimum bid price requirement can lead to delisting if corrective action is not taken within the allotted timeframe.

If the company fails to regain compliance by July 13, Nasdaq staff could determine that Canaan is subject to delisting, which would typically result in the stock moving to over-the-counter markets.

Such moves have historically made shares harder to trade and often led to further price declines.

Potential extension and reverse stock split option

Canaan said that if it does not meet the requirement by the July deadline, Nasdaq staff could still agree to grant it additional time to raise its share price.

The company added that it could apply for an extension that would include agreeing to “effecting a reverse stock split if necessary.”

A reverse stock split reduces the number of outstanding shares, which can mechanically lift the share price, though it does not change a company’s underlying valuation.

Such measures are commonly used by companies seeking to regain compliance with exchange listing rules.

The company has previously experienced short-term increases in its share price tied to business developments.

In October, Canaan said that a US-based company had bought 50,000 of its latest-generation “Avalon A15 Pro” mining rigs, marking its largest order in more than three years.

That announcement sent Canaan’s stock surging by 25%.

Broader trend of compliance pressure on crypto-linked firms

Canaan’s situation reflects a broader pattern among crypto-related and other small-cap companies facing listing challenges.

In December, Bitcoin treasury company Kindly MD received a similar Nasdaq notice after its shares traded below $1 for 30 consecutive days.

Nasdaq gave Kindly MD until June to regain compliance. Its shares closed at $0.46 on Friday and last traded above $1 in late October.

In another case, Nasdaq delisted biotech firm Windtree Therapeutics in August after it failed to meet compliance requirements.

Windtree had established a BNB treasury a month earlier, but its shares fell 77% on the day Nasdaq announced the delisting, as investors rushed to exit ahead of the move.

For Canaan, the next six months will be critical as it seeks to stabilize its share price and avoid removal from the Nasdaq exchange.

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Anthropic, one of the top players in the artificial intelligence (AI) industry, is considering going public through an IPO later this year. It is also lining up a big capital raise before going public. 

Anthropic to raise funds ahead of its IPO

This year will be a big one for the initial public offerings, with popular names being companies like SpaceX, Anthropic, OpenAI, and BitGo. 

Anthropic, the creator of Claude, a top player in the AI space, will likely receive funding from Sequoia, a top venture capital company known for backing top firms like Google, Stripe, and Apple.

The venture capital company plans to invest $1.5 billion in the company, in a round that Coatue and GIC will participate in. Other venture capital firms will also participate as the company is seeking to raise $25 billion at a $350 billion valuation.

The round will make Anthropic one of the biggest private companies in the world. OpenAI, the creator of ChatGPT, is valued at over $500 billion, while Elon Musk’s xAI has a valuation of between $230 billion and $235 billion. Sequoia has invested in xAI and OpenAI.

Anthropic has raised billions of dollars in the past few years. Its biggest investment came from Amazon, in a deal that deepened its collaboration with AWS. 

More companies like Fidelity, Altimeter Capital, Bailie Gifford, Blackstone, and General Catalyst have all invested in it in the past few years. These companies hope that its IPO will be well-received, a move that will boost their ROI. 

Anthropic is growing and aiming for profitability in 2028

Recent media reports suggest that Anthropic’s business continues to grow as businesses embrace its solutions. A report by Reuters noted that the company generated an annual run rate (ARR) of $9 billion in 2025, a figure that may jump to $20 billion this year.

Another report showed that the company expects to make $70 billion in 2028 and a free cash flow (FCF) of $17 billion. This growth is being fueled by its business and Claude Code solutions. 

Its business solutions have seen it partner with top companies like Microsoft, Cognizant, Deloitte, IBM, Allianz, and Salesforce. It now has over 300,000 corporate clients.

Anthropic is aiming to break even in 2028, thanks to its relatively frugal spending compared to OpenAI. For example, the company has largely avoided the costly forays into image and video generation that require more spending power. 

Data shows that OpenAI has committed to spending over $1.4 trillion in data centers. It has already made large commitments with companies like Oracle, Broadcom, and CoreWeave. 

A report by The Information estimated that OpenAI made $13 billion in revenue in 2025 and a cash burn of $9 billion. On the other hand, Anthroic is expected to have made $4.2 billion in revenue and a cash burn of $3 billion. 

READ MORE: What does Anthropic’s massive $50B AI expansion mean for US tech industry?

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Asian markets retreated at the start of the week as renewed trade tensions between the US and Europe rattled investors, while fresh data underscored slowing momentum in China’s economy.

Sentiment was further shaped by surging safe-haven assets, warnings of a deepening global memory-chip shortage from Micron Technology, and the European Union preparing potential retaliatory measures against Washington.

Asian markets hit by tariff fears, safe havens rally

Stock markets across Asia slid on Monday after US President Donald Trump threatened to impose additional tariffs on eight European nations unless the US was allowed to buy Greenland.

The move raised fears of a broader transatlantic trade conflict and weighed on risk appetite.

Japan’s Nikkei fell 0.8%, while MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.1%.

US equity futures were weaker in thin holiday trading, with S&P 500 futures down 0.8% and Nasdaq futures falling 1.1%.

European futures also pointed lower, with EUROSTOXX 50 and DAX futures shedding 1.1%.

The dollar weakened against traditional safe havens, falling 0.4% versus the Swiss franc and 0.2% against the yen.

Gold rose 1.4% to $4,660 an ounce and silver jumped 3.3% to $92.93, both at record highs. Oil prices were largely flat amid concerns over global growth and lingering geopolitical risks in the Middle East.

Trump said he would impose additional 10% import levies from Feb. 1 on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and Britain, rising to 25% on June 1 if no deal was reached.

China GDP meets target but momentum weakens

China’s economy lost steam toward the end of 2025 even as it met Beijing’s full-year growth target.

Gross domestic product expanded 4.5% in the fourth quarter from a year earlier, slowing from 4.8% in the third quarter and marking the weakest pace since early 2023.

For the full year, GDP grew 5%, matching the government’s goal.

Chinese onshore stocks edged slightly higher after the data, while bonds and the yuan were little changed.

Domestic demand remained the main drag.

Retail sales rose just 0.9% in December, missing expectations, while fixed-asset investment contracted 3.8% for the year.

The urban unemployment rate held steady at 5.1%.

“Despite achieving the 5% growth target, China’s economy actually posted weaker on-year growth one quarter after another in 2025, which shows domestic demand is still weak,” said Larry Hu, head of China economics at Macquarie Group.

Exports and manufacturing continued to underpin activity, with industrial output rising 5.2% in December and net exports contributing about a third of economic growth in 2025.

Micron warns of unprecedented memory chip crunch

Micron Technology said a global shortage of memory chips has intensified and will extend beyond this year, driven by surging demand for artificial intelligence infrastructure.

“The shortage we are seeing is really unprecedented,” Micron Executive Vice President of Operations Manish Bhatia said.

He noted that high-bandwidth memory for AI accelerators is absorbing industry capacity, leaving shortages for smartphones and PCs.

Micron and its peers have sold out much of their 2026 production, prompting the company to accelerate manufacturing expansion in the US and Asia.

Chinese media outlet Jiemian reported on Friday that leading smartphone manufacturers in China — including Xiaomi Corp., Oppo, and Shenzhen Transsion Holdings Co. — are scaling back their shipment targets for 2026 amid rising memory costs, with Oppo said to have reduced its outlook by as much as 20%.

Global smartphone shipments are expected to fall 2.1% this year as higher memory prices, driven by a chip shortage, increase costs and constrain production, according to a December estimate from industry tracker Counterpoint Research.

PC manufacturers, including Dell Technologies Inc., have also cautioned that the ongoing memory supply constraints are likely to weigh on their operations.

EU weighs retaliation against US tariff threat

The European Union is preparing potential countermeasures after Trump’s tariff threat, including reviving suspended tariffs on €93 billion of US goods and possibly deploying its anti-coercion instrument.

“President Trump has triggered an avalanche that threatens to destroy decades of transatlantic cooperation,” said Stefan Lofven, president of the Party of European Socialists.

UK Prime Minister Keir Starmer criticized President Donald Trump’s remarks as “completely wrong,” while Swedish Prime Minister Ulf Kristersson said Sweden would not submit to “blackmail.”

French President Emmanuel Macron described the threat as “unacceptable” and said he would seek to have the European Union deploy its strongest trade countermeasure, known as the anti-coercion instrument.

The European Union’s most immediate response would suspend approval of its July trade agreement with the United States, which still requires ratification by the European Parliament.

The European People’s Party, the parliament’s largest political group, said it would align with other parties to block endorsement of the deal.

EU leaders are expected to discuss options this week, even as officials say diplomacy remains the preferred path.

Economists warn that a full escalation could significantly disrupt trade flows and financial markets, adding to global uncertainty already weighing on investor sentiment.

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The CAC 40 and DAX Index futures plunged by over 1% in the futures market as a conflict between the United States and Europe escalated during the weekend. 

The German DAX, which tracks the biggest companies in the country, retreated to €25,122 from its all-time high of €25,470. Similarly, the CAC 40 Index futures dropped to €8,150, down from the year-to-date high of €8,393.

Europe considers the “nuclear option”

The European Union is considering executing its “nuclear option” as tensions with Washington escalate. These tensions rose after Donald Trump announced that he would impose tariffs on a few countries, including Germany, France, and Denmark.

Trump said that he will levy a 10% tariff on goods from these countries on February 1. These tariffs will then jump to 25% in June if a deal to acquire Greenland is not reached.

The announcement came as the European Parliament was considering voting for a trade deal he negotiated last year. As a result, some European leaders, including Emmanuel Macron, have urged the bloc to consider the Anti-Coersion Instrument (ACI) that was passed in 2023 to protect member states from being coerced by other countries.

The ACI response mechanisms include measures like tariffs, limiting access to the EU single market, suspending cooperation agreements, and other trade defense measures. According to the FT, the bloc is considering measures worth over €93 billion in retaliation to Trump’s policies.