Market Performance: A Weak Start That Set the Tone
Thursday morning opened on a nervous note for Dalal Street. Selling pressure surfaced early, and it stayed through the session’s opening hour. By mid-morning, the mood was clear—investors were stepping back.
The Sensex crashed over 600 points, slipping 0.80% to touch an intraday low of 81,707.94. At the same time, the Nifty 50 neared 25,150, falling 0.70% to 25,159.80.
This wasn’t limited to large caps. The selling spread across the board.
Mid-cap and small-cap stocks also felt the heat, with BSE mid- and small-cap indices down up to 0.70%.
Within the first hour of trade, investor wealth took a sharp hit.
- ₹3 lakh crore erased from market value
- BSE market capitalisation fell to ₹456.3 lakh crore
- Previous session close stood at ₹459.5 lakh crore
The timing mattered. Markets were already on edge ahead of the Economic Survey 2026, and even mild triggers were enough to push traders to book profits.
Main News: Why Is the Stock Market Down Today?
The fall wasn’t driven by one single event. Instead, several global and domestic worries came together, tightening risk appetite.
Rising US-Iran Tensions Shake Global Sentiment
Geopolitical stress returned to the spotlight. Tensions between the US and Iran intensified after warnings of possible military action and strong counter-responses.
Iran signaled that any attack would be met with an unprecedented reaction, while US military presence in the Gulf continued to build.
For markets, the concern is straightforward. A direct conflict could:
- Push fuel prices higher
- Increase global inflation
- Disrupt economic stability worldwide
These risks keep investors cautious, especially in emerging markets like India.
Rupee Hits Record Low Against the Dollar
Currency pressure added to the nervousness. The Indian rupee slipped to an all time low of 92 per US dollar in early trade.
The weakness came amid:
- Continued foreign capital outflows
- Rising crude oil prices
- Ongoing geopolitical uncertainty
A falling rupee raises fears of more money moving out of Indian equities, particularly when foreign investors have already been reducing exposure.
Crude Oil Prices Jump Near $70 a Barrel
Oil markets reacted swiftly to geopolitical developments. Brent crude surged nearly 2%, hovering close to the $70 per barrel mark.
For India, this matters more than usual. As one of the world’s largest crude oil importers:
- Higher oil prices strain fiscal calculations
- Import bills rise, putting pressure on the currency
- Inflation risks increase
- Corporate profitability can take a hit over time
Persistent high crude prices tend to drag sentiment across equity markets.
Budget 2026 Caution Weighs on Investors
Another layer of uncertainty came from the domestic front. With the Union Budget 2026 approaching, expectations remain muted.
There is growing caution that:
- Large consumption-boosting measures may be limited
- Major tax changes could be unlikely
Without clear near-term triggers, investors appeared unwilling to chase recent gains. The result was a pause—and then a pullback.
FII Selling Continues to Hang Over Markets
Foreign investor activity remains a key pressure point. FIIs have been consistent sellers in the cash segment since July last year.
In January so far, net selling has crossed ₹43,000 crore. Although there was marginal buying in the previous session, the broader trend remains skewed toward selling.
This steady outflow has kept rallies short-lived and declines sharp, especially during global risk-off phases.
Company Details: Broad-Based Selling, No Safe Corners
There was no clear sectoral shield during the fall. Selling was visible across:
- Large-cap stocks
- Mid-cap names
- Small-cap counters
The decline reflected sentiment rather than stock-specific triggers. Investors preferred reducing exposure across the board instead of selectively buying dips.
Summary: Why Markets Slipped Despite No Fresh Shock?
The Sensex crash of over 600 points and the Nifty 50 nearing 25,150 reflect a market balancing multiple uncertainties at once.
Key factors behind the fall:
- Escalating US-Iran tensions
- Rupee hitting a record low
- Rising crude oil prices
- Cautious positioning ahead of the Economic Survey 2026
- Ongoing FII selling pressure
This wasn’t panic. It was caution playing out in real time. With global risks elevated and key policy events around the corner, investors chose to protect gains rather than chase momentum.
For now, the story of the market is simple—wait, watch, and tread carefully.
Source: Livemint
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