Indian stock market plunges: Nifty 50 crashes, Sensex falls sharply - Reasons behind the downturn.

Stock Market Crash: Nifty 50 Drops Below 25,550, Sensex Sheds 2,700 Points in 6 Days

The Indian stock market is experiencing a significant downturn, with key indices plummeting for the sixth consecutive session. The Nifty 50 index has fallen below 25,550, while the Sensex has shed 2,700 points over the last six trading days. This sustained decline has eroded investor wealth by more than ₹16 lakh crore.

On January 12, 2026, the Sensex crashed over 500 points, reaching an intraday low of 83,043, a fall of more than 0.60%. Simultaneously, the Nifty 50 dropped to 25,529, also declining by 0.60%. From a recent closing high of 85,762.01 on January 2nd, the Sensex has seen a significant drop, reflecting growing investor unease. The Nifty has also declined about 3% over the same period, hitting a low of 25,529.05.

Several factors are contributing to this market downturn. Rising geopolitical risks are a primary concern, creating uncertainty among investors. Additionally, unease surrounding potential US tariffs is weighing on market sentiment. Continuous foreign capital outflow is further exacerbating the situation. Investors are also displaying caution ahead of the Q3 earnings season, impacting riskier equities.

The market capitalization of all BSE-listed companies has fallen by ₹16.85 lakh crore in six days, bringing the total to ₹464.39 lakh crore. This reflects the broad impact of the selloff across the market.

This recent downturn follows the market's worst weekly performance in over three months. The anticipated U.S. Supreme Court ruling on President Trump's tariffs has yet to materialize, prolonging policy uncertainty and further contributing to investor anxiety.

While intermittent bounces may occur, the Nifty and the Sensex are currently trading near their lowest points of the day. Real estate and private banks are among the top losers, while PSU banks, defense, and IT stocks have gained. Midcaps are relatively outperforming. Market analysts suggest that geopolitical tensions are driving the market, and caution is advised.


Written By
Aarav Verma is a political and business correspondent who connects economic policies with their social and cultural implications. His journalism is marked by balanced commentary, credible sourcing, and contextual depth. Aarav’s reporting brings clarity to fast-moving developments in business and governance. He believes impactful journalism starts with informed curiosity.
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