Why Is Stock Market Falling Today? Benchmark equity indices Sensex and Nifty extended their losing streak for a fourth consecutive session on Thursday, weighed down by broad-based selling amid tariff worries
following fresh comments from US President Donald Trump and persistent foreign institutional investor (FII) outflows.
Around 12:10 pm, the Sensex was down 713.82 points, or 0.84 per cent, at 84,247.32, while the Nifty 50 slipped 251.10 points, or 0.96 per cent, to 25,889.65. Sectorally, all indices were in the red, with metals and oil & gas stocks leading the decline.
Within the Nifty 50 pack, Tata Consultancy Services, Hindalco Industries and JSW Steel were among the top laggards, falling up to 2 per cent. In contrast, ETERNAL and Adani Ports and Special Economic Zone were among the key gainers, rising up to 1 per cent. Market breadth remained negative, with about 1,479 stocks advancing, 1,767 declining and 171 remaining unchanged.
Sensex tumbles 1,500 points in 4 days, Rs 7 lakh crore erased
Indian equity benchmarks slumped for the fourth straight session on Thursday, with the BSE Sensex losing more than 1,465 points in four sessions and the Nifty 50 retreating 1.7% over the same period.
The market capitalization of all listed companies on the BSE fell by Rs 7.19 lakh crore in four days to Rs 474 lakh crore.
Key factors behind the market decline
1) FII selling:
Foreign institutional investors sold equities worth Rs 1,527.71 crore on Wednesday, marking the third straight session of outflows after a brief pause on January 2, when they were marginal buyers worth Rs 289.80 crore. So far in January, FIIs have offloaded shares worth about Rs 5,760 crore, following record outflows in 2025.
2) Weekly expiry:
Thursday is the weekly expiry day for Sensex derivatives. Expiry sessions typically see traders unwinding or rolling over positions, leading to higher volumes and increased volatility.
3) Weak global cues:
Asian equities traded mostly lower on Thursday, reflecting caution after a strong start to the year. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.6%, while Japan’s Nikkei dropped 1.2% and China’s CSI300 blue-chip index declined 0.8%. Futures in the U.S. and Europe also pointed to subdued investor sentiment, with Nasdaq futures easing 0.35%, S&P 500 futures up 0.22%, EUROSTOXX 50 futures down 0.12%, and FTSE futures slipping 0.4%.
Market participants reacted to rising geopolitical tensions and trade issues, including China’s anti-dumping probe into imports of chemicals used in chipmaking, which affected Japanese chemical manufacturers negatively while boosting their Chinese peers. Investors also monitored the upcoming U.S. jobs report for clues on the Federal Reserve’s rate trajectory. Analysts at Goldman Sachs forecast a 70,000 rise in nonfarm payrolls for December, with the unemployment rate expected to edge down to 4.5%, Reuters reported.
“Geopolitics and global trade have cast a shadow of chronic risk aversion for equity markets,” analysts led by Abhishek Saraf of Motilal Oswal Financial Services told Reuters, adding that the conclusion of the long-pending India–US bilateral trade deal would be a key catalyst for an upside move.
4) Crude oil prices:
Brent crude, the global oil benchmark, rose 0.4 per cent to USD 60.20 per barrel. Higher crude prices are negative for India, which imports most of its oil requirements.
5) Trade deal concerns:
US President Donald Trump has indicated support for a bipartisan Russia sanctions bill that could slap duties of at least 500 per cent on Russian imports, using the proposal as leverage against countries such as India, China and Brazil for purchasing discounted Russian oil. While the legislation is yet to be passed, Senator Lindsey Graham said it could be put to vote as early as next week.
Trump also warned of the possibility of higher tariffs on Indian goods if New Delhi does not address Washington’s concerns over its Russian oil imports. The US has already imposed tariffs of up to 50 per cent on certain Indian products, with about half of those duties linked to India’s purchases of Russian crude.
The US–India trade relationship continues to face strain. Trump said Prime Minister Narendra Modi had personally raised the issue of early delivery of American-made Apache helicopters, recalling the interaction by saying Modi addressed him as “sir.” “I mean, I had India coming to me, sir. I’ve been waiting five years; we’re changing it. We’re changing it,” Trump said on Tuesday. “India ordered 68 Apaches, and Prime Minister Modi came to see me. Sir. May I see you, please? Yes.” He added that he has “a very good relationship” with Modi, while noting the ongoing trade friction: “He (Modi) is not that happy with me because, you know, they’re paying a lot of tariffs now.”
These developments underscore how US sanctions and tariff policies are increasingly shaping investor sentiment in India, adding another layer of uncertainty to an already nervous market.
“The much-awaited US–India trade deal, which is critical for India’s sustained growth and macro-economic stability, is not happening. This and the continuing FII selling are impacting the market,” said VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.
Technical outlook
Devarsh Vakil, Head of Prime Research at HDFC Securities, said that despite near-term weakness, the broader positional trend remains bullish, supported by a pattern of higher tops and higher bottoms on daily charts.
“On the upside, the recent swing high at 26,373 is likely to act as an immediate resistance level, while 26,000 is expected to provide strong near-term support,” he added.
