Market Performance
The Indian stock market is clearly under pressure.
For the third consecutive trading session, benchmark indices stayed firmly in the red, reflecting growing nervousness among investors.
On January 21, selling intensified across segments:
- Sensex slipped over 1,050 points, falling nearly 1.3% at its lowest point of the day to 81,124.45
- Nifty 50 dropped below the 25,000 mark, touching an intraday low of 24,919.80
- BSE Midcap and Smallcap indices declined by around 2% each
The damage wasn’t limited to one day. Over the last three sessions:
- Sensex is down by more than 2,400 points, close to a 3% fall
- Nifty 50 has also lost about 3%
The bigger story, however, is investor wealth.
In just three trading days, nearly ₹18 lakh crore has been wiped out as the total market capitalisation of BSE-listed companies dropped from ₹468 lakh crore to below ₹450 lakh crore.
This is not panic selling. It’s cautious money stepping back.
Main News: Why the Indian Stock Market Is Falling?
The current market mood is driven by global worries more than domestic triggers. Several stress points are playing out at the same time, making investors uncomfortable with risk.
1. Global Trade Tensions Resurface
Markets are uneasy over fresh concerns of a trade conflict between the US and Europe.
Recent developments around new US tariff announcements and growing resistance from European nations have raised fears of retaliation. Any escalation here could slow global trade and weaken overall economic momentum.
For equity markets, especially emerging ones like India, this creates uncertainty. When global growth looks fragile, investors typically reduce exposure to equities.
2. Rupee Slides to Record Low
Currency movement has added another layer of concern.
The Indian rupee weakened further, slipping to a new all-time low of 91.34 against the US dollar, extending its decline for the sixth session in a row.
Key data points investors are tracking:
- Rupee has fallen nearly 2% so far in 2026
- It had already declined about 5% in the previous year
- Pressure continues amid global uncertainty and capital movement
A weaker currency raises import costs and affects overall sentiment, especially when global conditions are already tense.
3. Persistent FII Selling Continues
Foreign institutional investors have remained on the selling side.
So far in January (till the 20th):
- FIIs sold Indian equities worth over ₹32,000 crore in the cash market
The trend isn’t new. Since July, foreign investors have pulled out more than ₹2.2 lakh crore from Indian equities.
Sustained FII selling often weighs on benchmark indices and keeps volatility elevated.
4. Risk-Averse Mood Spreads Across Segments
The current market environment is clearly risk-off.
Several factors are influencing investor behaviour:
- Heightened geopolitical uncertainty
- Muted earnings performance
- Caution ahead of Union Budget 2026
Retail participation has also softened, particularly in mid and small-cap stocks, where liquidity remains tight after sharp corrections in recent months.
When liquidity dries up, even modest selling can lead to sharper price declines.
Company Details
This market movement is not driven by company-specific fundamentals or individual corporate events.
The sell-off remains broad-based, impacting large, mid, and small-cap stocks alike.
No sector has acted as a safe haven during this phase, reinforcing the fact that the pressure is macro-driven rather than company-led.
Summary of the Article
The Sensex and Nifty News over the last three days tells a clear story: markets are taking a step back amid growing global uncertainty.
- Benchmarks have corrected nearly 3%
- Investor wealth has shrunk by about ₹18 lakh crore
- Global trade tensions, currency weakness, and sustained FII selling are weighing on sentiment
- Risk appetite remains low ahead of key global and domestic developments
For now, the market is moving cautiously, reacting to the world outside rather than headlines at home.
Source: Livemint
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