Sensex Crashes Over 600 Points as Indian Stock Market Extends Losses
The Indian stock market continued its downward trend for the fifth consecutive session on Friday, January 9, as weak global cues and domestic concerns weighed on investor sentiment.
The Sensex crashed over 600 points, or nearly 0.80%, to an intraday low of 83,547, while the Nifty 50 fell 0.80% to hit 25,681. Broader markets remained under pressure, with the BSE Midcap and Smallcap indices declining over 1% each, signalling widespread selling across sectors.
Over the last five trading sessions, the Sensex has dropped more than 2,200 points (2.6%), while the Nifty 50 is down 2.5%, raising concerns among investors.
Why Is the Indian Stock Market Falling Today?
The sharp fall in Sensex and Nifty 50 can be attributed to a mix of global uncertainty and domestic triggers. Here are the five major reasons behind the Indian stock market decline:
1. US Supreme Court Verdict on Trump Tariffs Weighs on Markets
Global investors are closely watching the US Supreme Court’s ruling on Donald Trump’s “Liberation Day” tariffs, expected later on Friday.
A verdict against Trump could provide temporary relief to global equities. However, a ruling in his favour may revive fears of aggressive trade policies, hurting global growth and emerging markets like India.
2. Fresh Fears of Higher US Tariffs Impact Market Sentiment
Investor concerns intensified after Republican Senator Lindsey Graham said on January 7 that Trump supported a Russia sanctions bill that could raise US tariffs to as high as 500% on countries importing Russian oil.
Such developments have increased fears of global trade disruptions, directly impacting the Indian stock market outlook.
3. Q3 Earnings Season Keeps Investors on the Edge
Domestic investors are cautious ahead of the Q3 earnings season, which is expected to provide clarity on corporate profitability.
Retail major DMart will announce its December quarter results on Saturday, followed by IT giants TCS and HCL Tech on Monday. While experts expect earnings recovery from Q3 onwards, any earnings disappointment could accelerate market losses.
4. FII Selling Continues to Drag Sensex and Nifty
Relentless selling by Foreign Institutional Investors (FIIs) remains a key reason behind the market correction.
FIIs have been net sellers since July last year and have sold over ₹8,000 crore worth of Indian equities in January (till the 8th). Persistent foreign capital outflows were a major factor behind the market’s muted returns in 2025.
5. Uncertainty Over India-US Trade Deal Adds Pressure
Unresolved negotiations around the India-US trade deal are also weighing on investor confidence.
According to Vinod Nair, Head of Research at Geojit Investments, delays in finalising the trade agreement could continue to drag Indian markets and prolong underperformance.
Other Factors Affecting the Indian Stock Market Today
Apart from the major triggers, geopolitical tensions, volatile crude oil prices, and weakness in the Indian rupee are further adding to market volatility.
Indian Stock Market Outlook: What Should Investors Do?
Experts advise investors to remain cautious in the near term, avoid panic selling, and focus on fundamentally strong stocks. Market direction will largely depend on global cues, Q3 earnings results, FII flows, and geopolitical developments.
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