Stock market crash today: Equity markets in India witnessed a sharp decline as benchmark indices, Nifty50 and BSE Sensex, fell over 2% during the past few trading sessions. Stock market crash today: Friday marked the fifth consecutive day of losses, as investor sentiment weakened due to global trade concerns and political developments in the United States.
Over the last five sessions, the BSE Sensex has dropped more than 2,100 points, sliding from 85,762.01 on January 2 to an intraday low of 83,506.79 on Friday. During the same period, the NSE Nifty 50 fell below 25,700, reflecting widespread market weakness.
Stock market crash today: FII Selling Deepens Market Slump
1. Foreign Institutional Investor (FII) Outflows
The prolonged market decline has been worsened by ongoing foreign fund selling. On January 8, FIIs sold equities worth Rs 3,367.12 crore, marking the fourth straight session of net selling after a brief pause on January 2. The continuous exit of overseas funds has intensified market weakness, as investors remain cautious amid global uncertainties.
2. Trade Tensions with the US
Equity markets have also been impacted by uncertainty over trade relations with the US. President Donald Trump suggested imposing tariffs on Indian exports in response to India’s continued purchase of Russian crude. A proposed 500% tariff under the Russia Sanctioning Act has raised concerns among investors.
Despite six rounds of bilateral trade talks since March, a comprehensive agreement between India and the US remains unresolved. US Commerce Secretary Howard Lutnick indicated that talks slowed after Prime Minister Modi did not personally communicate with Trump. Current US tariffs include levies of up to 50% on Indian goods, including a 25% tariff linked to Russian oil imports, which India has described as “unfair and unreasonable.”
Markets are closely watching a pending US Supreme Court ruling on the legality of Trump’s tariffs. A verdict against the tariffs could lead to refunds of nearly $150 billion to importers and significantly influence global trade dynamics.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said, “If the Supreme Court rules the tariffs illegal, we could see a strong rally in Indian equities, especially since India has been heavily impacted by the 50% levies.” He also noted that the recent sell-off affected sectors not directly linked to US tariffs, such as financials, consumer discretionary, and industrials, offering potential buying opportunities for long-term investors.
3. Weak Global Signals
Soft performances in overseas markets have added to caution among Indian investors. Asian stocks fell as markets awaited key US employment data and the Supreme Court’s decision on Trump’s tariffs, which could once again unsettle global markets.
Read this also – Why Crypto Market Is Down Today in India
4. Rising Crude Prices
Firming crude oil prices have further pressured Indian markets, given the country’s heavy reliance on imports. Geopolitical tensions, particularly in Venezuela following the capture of President Nicolás Maduro, contributed to the rise in oil prices, increasing concerns for energy-importing economies like India.
Read this also – StubHub IPO disclosure issues 2026 – FCS Market
5. Technical Indicators Suggest Further Weakness
Market charts indicate continued bearish pressure, as key indices broke below critical support levels. Shrikant Chouhan, Head of Equity Research at Kotak Securities, said, “The breach of the 20-day simple moving average (SMA) intensified selling. Daily charts show long bearish candles, signaling further weakness.”
Read this also- Can We Trade Forex in Zerodha 2026
He added that as long as Nifty stays below 26,000 and Sensex below 84,500, negative sentiment may persist, with potential declines toward 25,700 for Nifty and 83,700 for Sensex. On the upside, a recovery above these levels could trigger a short-term rebound.
Read this also- What Is Forex Markup 2026
Geojit Investments also noted that while short-term oscillators are oversold, there could be a minor bounce unless Nifty falls below 25,776, which would signal a further correction, potentially testing the 200-day SMA at 25,039.
FAQs
1. Why is the stock market crashing today?
The stock market is declining due to a combination of foreign investor sell-offs, global trade tensions, rising crude oil prices, and weak technical signals. Political developments in the US and uncertainty over tariffs on Indian goods have also contributed to the fall.
2. How much have the Sensex and Nifty fallen?
Over the last five trading sessions, BSE Sensex has dropped over 2,100 points, from 85,762 to around 83,506. NSE Nifty 50 has fallen below 25,700 during the same period.
3. Are foreign investors selling Indian stocks?
Yes, Foreign Institutional Investors (FIIs) have been selling heavily. On January 8, they sold equities worth Rs 3,367 crore, marking multiple consecutive sessions of net selling.
4. How are US trade policies affecting the market?
Markets are worried about tariffs imposed by the US on Indian goods, including a proposed 500% tariff under the Russia Sanctioning Act. Any decision by the US Supreme Court regarding these tariffs could significantly impact Indian equities.
5. Which sectors are most affected?
Sectors such as financials, consumer discretionary, and industrials have seen broad-based selling due to market weakness. However, some of these sectors may offer long-term investment opportunities amid the correction.
6. How do crude oil prices affect Indian markets?
India imports a large portion of its crude oil. Rising oil prices increase import costs, fuel inflation, and market uncertainty, adding pressure on equities.
7. What do technical indicators say about the market trend?
Technical charts show that Nifty and Sensex have broken key support levels and formed bearish patterns. Analysts suggest the market may continue to decline unless indices recover above critical levels like Nifty 26,000 or Sensex 84,500.
8. Is this a good time to invest in the market?
While short-term volatility is high, market experts suggest that long-term investors could find opportunities in fundamentally strong sectors, especially if prices have corrected sharply.
9. How long could this downturn last?
The duration of the correction depends on global cues, US policy decisions, and domestic economic factors. Technical support levels may determine short-term recovery or further declines.
Disclaimer
The information provided on fcsmarket.com about the “Stock Market Crash Today” or any financial markets, stocks, indices, commodities, currencies, cryptocurrencies, or investment opportunities is for general informational and educational purposes only. It does not constitute financial, investment, trading, tax, legal, or professional advice.
Market conditions can change rapidly, and past performance is not indicative of future results. You should not base any investment decisions solely on the information provided on this website. Always perform your own research and consult with a qualified financial advisor before making any investment or trading decisions.
fcsmarket.com, its authors, owners, contributors, and affiliates are not responsible for any losses, damages, or negative outcomes that may result from the use of the information contained on this website.
By accessing and using fcsmarket.com, you acknowledge and agree that you are solely responsible for your own investment decisions.