The Indian stock market experienced a significant downturn on Tuesday, January 13, 2026, with the Sensex crashing nearly 600 points and the Nifty 50 falling below the 25,650 mark. This decline follows a volatile period for the Indian markets, which had just snapped a five-day losing streak.

Market Performance

At the market open on Monday, the NSE Nifty 50 and BSE Sensex opened lower, with the Nifty 50 dropping 0.06 per cent at 25,669.05 and Sensex declining 0.17 per cent at 83,435.31. Indices continued to fall, with the NSE Nifty 50 falling nearly 200 points to trade at 25,475 as of 11:32 AM, while the BSE Sensex also fell nearly 0.80 per cent to trade lower at 82,918 points. On January 9, 2026, the Nifty 50 was trading 0.74 per cent or 191.50 points down at 25691.65, and the Sensex was trading 0.75 per cent or 633.55 points down at 83542.79.

Only 13 stocks in the Nifty 50 pack traded in the green, with Coal India gaining nearly 3 per cent. HDFC Life and SBI Life also gained over 1 per cent each. Eicher Motors was the biggest laggard, declining 1.94 per cent, followed by Max Healthcare and Bajaj Finance, which declined over 1.5 per cent each. Overall market breadth was sharply negative, with 1,025 of the 4,088 stocks traded advancing, while 2,847 declined and 216 ended unchanged as of 10:44 AM on January 12, 2026.

Key Factors Influencing the Market Decline

Several factors appear to be contributing to the current downturn in the Indian stock market:

• US Tariff Concerns: Persisting concerns over US tariffs are weighing on investor sentiment.
• Foreign Capital Outflow: Foreign capital outflow is putting pressure on the Indian stock market.
• Global Cues: Mixed global cues are contributing to uncertainty in the market.
• Decline in the US Dollar Index: Markets were also battered by the decline in the US Dollar Index. The index fell to 98.96, down by 0.20 per cent from Friday's close of 99.13.

Expert Opinions

Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, noted that the US Dollar Index fell due to thin Monday volumes and positioning ahead of European data. He added that the index was up by 0.7 per cent despite a mixed NFP during the last week.

Additional Factors

Other factors that could influence the stock market include:

• The US Supreme Court's expected ruling on the legality of Donald Trump's tariffs.
• Developments regarding Vodafone Idea's schedule for repaying its telecom dues.
• The performance of Initial Public Offerings (IPOs), such as Bharat Coking Coal IPO.

Broader Market Trends

Despite the current downturn, SIP contributions have hit a record high, even as net inflows into equity mutual fund schemes declined. Gold ETF flows have also surged to a multi-year high.