Stock Market Crash: Sensex Slides 2,700 Points in 6 Days as Nifty 50 Slips Below 25,550

The stock market crash narrative refuses to fade. For the sixth straight session on Monday, January 12, Indian equities stayed under pressure. Selling was steady. Sentiment was fragile. And confidence took another hit.

By mid-session, it was clear the market was still trapped in a bear grip—pulled down by global uncertainty, foreign fund exits, and rising geopolitical noise.

This wasn’t a sudden fall.

It was a slow, grinding slide.

And six days of losses have now added up.

Market Performance: Six Days of Relentless Decline

The numbers tell a clear story of the stock market crash unfolding session by session.

• Sensex fell over 500 points on Monday
  • Intraday low: 83,043
• Nifty 50 slipped below a key psychological level
  • Intraday low: 25,529
• Both indices declined by over 0.60% during the session

Zooming out to six trading days:

• Sensex down more than 2,700 points
• Nifty 50 down over 3%
• Losses spread across sectors, not limited to one pocket of the market

This sustained fall has kept traders cautious and long-term investors uneasy.

Investor Wealth Takes a Hit

The real damage of the stock market crash is visible in market capitalisation.

• Total market cap of BSE-listed companies:
  • Dropped to nearly ₹465 lakh crore
  • From over ₹481 lakh crore on January 2
• Investor wealth erosion:
  • More than ₹16 lakh crore wiped out in six sessions

This sharp decline reflects not panic selling—but persistent risk aversion.

Why Is the Stock Market Down? Key Triggers Behind the Crash

The selloff is not driven by one headline.

It’s a mix of global pressure points tightening at the same time.

1. Rising Anxiety Over US Tariffs

Trade-related uncertainty has once again moved to the center of market worries.

• India–US trade negotiations remain unresolved
• Concerns revolve around a potential US sanctions bill linked to Russia
• If passed, tariffs on countries buying Russian oil could go up to 500%
• India already faces a 50% tariff, making the risk feel real for markets

For investors, the uncertainty—not the outcome—is the bigger problem.

2. Persistent Foreign Fund Outflows

Foreign selling continues to weigh heavily on Indian equities.

• January (till 9th):
  • FIIs sold nearly ₹12,000 crore worth of shares
• July to December (previous year):
  • Cumulative FII selling stood at around ₹1.85 lakh crore

The consistent outflow has acted as a ceiling on any meaningful market recovery.

3. Rising Geopolitical Risks

Global politics is adding another layer of discomfort.

Ongoing and emerging tensions include:

• The US–Venezuela conflict
• Escalation risks involving Iran
• Growing uncertainty around Greenland-related developments

For global investors, these events reduce appetite for risk-heavy assets like equities.

4. Shift Towards Safe-Haven Assets

As equity volatility rises, money is clearly moving elsewhere.

• MCX Gold (February futures):
  • Jumped over ₹2,400
  • Hit a record ₹1,41,250 per 10 grams
• MCX Silver (March futures):
  • Rose over 4%
  • Reached ₹2,63,996 per kg
• International gold prices:
  • Crossed $4,600 per troy ounce for the first time

This shift highlights how investors are prioritising safety over growth.

5. Caution Ahead of Q3 Results Season

Another factor keeping markets defensive is earnings uncertainty.

• December quarter results are underway
• Focus remains on large-cap sectors:
  • IT
  • Banking

Key companies reporting this week include:

• TCS and HCL Tech – January 12
• Infosys – January 14
• Reliance – January 16
• HDFC Bank and ICICI Bank – January 17

Until earnings clarity improves, risk-taking remains limited.

Company & Market Snapshot

Here’s a quick view of the broader market impact during this stock market crash:

• Index performance:
  • Sensex: - 2,700+ points (6 sessions)
  • Nifty 50: - 3%+
• Market capitalisation loss:
  • - ₹16 lakh crore
• Safe-haven surge:
  • Gold and silver at record highs
• Foreign investor trend:
  • Continuous net selling since July

Summary: Stock Market Crash Driven by Global Pressure, Not Panic

This stock market crash isn’t built on fear alone—it’s built on uncertainty.

Multiple global headwinds have converged:

• Trade tensions
• Foreign fund exits
• Geopolitical instability
• Flight to safety
• Earnings-related caution

Together, they’ve kept Indian equities under pressure for six straight sessions.

Until global clarity improves and risk appetite returns, the market remains vulnerable. For now, the story of the Indian stock market is not about recovery—it’s about resilience in the face of persistent global stress.

Source: Livemint