Sensex and Nifty News: Indian Stock Market Slides Over 800 Points in Two Days

The Indian stock market faced a rough patch as selling pressure persisted for the second consecutive day. Both the Sensex and Nifty 50 tumbled, reflecting cautious investor sentiment amid global and domestic uncertainties.

Market Performance

• Sensex: Fell over 500 points (0.60%) to an intraday low of 82,745.
• Nifty 50: Dropped below 25,450, touching 25,405 in intraday trade.
• BSE Midcap & Smallcap indices: Both declined by nearly 2% each.

In just two sessions, the Sensex has shed more than 800 points (around 1%), while the Nifty 50 has fallen over 1%.

What Drove the Market Down?

Several key factors contributed to the market’s decline:

1. Global Trade Tensions

Investors are wary as geopolitical tensions intensify. The United States’ recent trade stance on Europe and threats of tariffs have created uncertainty. Reports suggest the European Union may retaliate with tariffs on $108 billion worth of US goods if the US follows through on its threat.

Such global trade disputes often trigger volatility, keeping investors cautious and prompting them to scale back exposure to riskier assets.

2. Mixed Corporate Earnings

Q3 results so far have shown a mixed picture. While earnings remain largely stable, there has been a lack of positive surprises, leaving market sentiment subdued.

• Certain sectors, like automobiles, have shown growth momentum, but overall, the market has not seen a broad-based earnings boost.

3. FII Selling Pressure

Foreign investors have continued selling Indian equities, adding to the downward pressure.

• January outflow so far: Over ₹29,000 crore in the cash segment.
• The selling reflects ongoing concerns about trade deals, currency fluctuations, and valuations.

4. Flight to Safe-Haven Assets

Global and domestic risks have encouraged investors to move money toward safer investments:

• Gold and silver have seen record-breaking rallies, prompting some investors to book profits from equities and shift funds to precious metals.
• Safe-haven demand is likely to continue until uncertainties subside.

5. Budget 2026 Anticipation

The upcoming Union Budget on February 1 has also influenced market sentiment.

• Investors are cautious, awaiting announcements that could impact economic growth, job creation, and consumer demand.
• Speculation about fiscal policies and government spending is adding to the uncertainty.

Summary

The Indian stock market’s recent slide highlights how global trade tensions, corporate earnings trends, FII activity, and domestic policy anticipation can collectively impact market performance.

• Sensex: Down over 800 points in two sessions.
• Nifty 50: Fell more than 1% to touch 25,405.
• Midcap & Smallcap indices: Near 2% decline.
• Key drivers: Trade disputes, mixed Q3 earnings, FII outflows, safe-haven asset flows, Budget 2026 anticipation.

Investors are closely watching global developments and domestic cues as the market navigates through this uncertain period.

Source: Livemint