Markets Tumble: Sensex Down 600 Points Amid Five Key Triggers
Stock Market Slides as Sensex Crashes 600 Points, Nifty Falls Below 25,500: Indian stock markets fell sharply on Monday, January 19. The Sensex dropped over 600 points in early trade, while the Nifty slipped close to 25,500. Weak global cues, heavy foreign selling, and disappointing quarterly results hurt investor sentiment. Small-cap and mid-cap stocks also saw strong selling pressure. IT, energy, and real estate stocks led the losses.
Around 10:05 AM, the BSE Sensex was down 622.85 points, or 0.75%, at 82,947.48. The Nifty fell 182.1 points, or 0.7%, to 25,515.15.
Key reasons behind the market fall:
Global market worries:
US President Donald Trump warned of new tariffs on eight European countries, raising fears of a global trade war. He said the US may impose a 10% tariff from February 1, which could rise to 25% from June. After this, European markets and Asian indices fell sharply, while US futures also traded lower.
Fed leadership uncertainty:
Confusion over the next US Federal Reserve chair hurt market confidence. Trump ruled out Kevin Hassett for the role, reducing hopes of interest rate cuts next year.
FII selling continues:
Foreign investors sold Indian shares for the ninth straight session. On Friday alone, FIIs sold stocks worth ₹4,346 crore. Total FII outflows in January have crossed ₹22,500 crore.
Weak Q3 results:
Mixed December-quarter earnings pressured stocks. The Nifty IT index fell nearly 1%, with Wipro plunging up to 9%. Banking stocks also declined after ICICI Bank posted weaker-than-expected results.
Rising volatility:
India VIX jumped over 5% to 11.98, showing higher market nervousness.
