Indian Stock Market Meltdown: Sensex Plunges 1000 Points, Nifty Falls Below 25,000

Listen to this article in summarized format Loading... × Indian equities slid deeper into the red on Wednesday, extending a bruising selloff into a third straight session as global shockwaves and patchy earnings knocked the wind out of risk appetite. The BSE Sensex tumbled more than 1,000 points intraday, while the Nifty 50 slipped below the closely watched 25,000 mark for the first time since October 2025. The Sensex fell as much as 1,056 points to an intraday low of 81,124, while the Nifty dropped 1.2%, touching an intraday low of 24,920. At the opening bell, the Sensex was down 102 points, or 0.22%, at 82,078.16, and the Nifty was lower by 17 points, or 0.07%, at 25,215.55, slipping below 25,250 as early gains fizzled. The selloff erased about Rs 6 lakh crore in investor wealth, dragging the market capitalization of all BSE-listed companies down to Rs 449.76 lakh crore. The decline reflects a market grappling with multiple headwinds at once, persistent foreign fund outflows, uneven domestic earnings, and rising global uncertainty, after Tuesday’s sharp selloff pulled benchmarks to their weakest levels in more than three months. Here are the key factors behind the market fall today: Live Events 1. Trump’s Greenland threats Asian markets extended losses for a third session amid escalating tensions over U.S. President Donald Trump’s threats to acquire Greenland and revive a trade war with the European Union. The rhetoric revived fears of offshore selling of U.S. assets, the so-called “Sell America” trade that first surfaced after last year’s “Liberation Day” tariff announcements in April, after Wall Street slumped more than 2% overnight and the U.S. dollar logged its biggest fall in over a month. That global rout pushed investors toward safe havens, with gold and silver hitting record highs. Trump doubled down on his stance, saying there was “no going back” on his goal to control Greenland and refusing to rule out the use of force. His renewed tariff threats against Europe have raised fears of a fresh global trade war. The European Union is set to hold an emergency summit in Brussels on Thursday, while investors await Trump’s speech at the World Economic Forum in Davos later Wednesday. In early trade, MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.3%, while Japan’s Nikkei slid 1.2%, extending its losing streak to five sessions. U.S. futures clawed back some ground, but only after the S&P 500 dropped 2.06% and the Nasdaq Composite plunged 2.4% overnight. 2. Weak domestic earnings A choppy earnings season offered little relief. Misses from heavyweight companies such as Reliance Industries Ltd. and ICICI Bank weighed on sentiment, reinforcing concerns that lofty valuations may be running ahead of fundamentals. The IT index fell 1%, leading sectoral losses. Persistent Systems slid 3.5% despite reporting higher quarterly profit, as multiple brokerages flagged limited upside and cited rich valuations. The combination of earnings disappointments and cautious outlooks has made investors increasingly selective, amplifying the broader market pullback. 3. Rupee sinks to record low The Indian rupee slid to an all-time low on Wednesday, adding another layer of discomfort for equity investors already rattled by global risk aversion. The currency weakened past its previous record low of 91.0750 per U.S. dollar set in mid-December and was last quoting around 91.2950, pressured by fears stemming from the Greenland dispute, sustained capital outflows and the absence of a U.S.–India trade agreement. The rupee has fallen about 1.5% so far this month, extending a near 5% decline in 2025, a move that has raised concerns over imported inflation and foreign investor sentiment. The Reserve Bank of India has stuck to its recent playbook, intervening intermittently to smooth volatility rather than defend any specific level in the foreign exchange market, allowing the currency to adjust to broader global and domestic pressures. 4. Foreign investors continue to sell Relentless selling by foreign institutional investors continued to sap market confidence, with FIIs extending their net selling streak to an eleventh straight session. On Tuesday, Jan 20, overseas investors sold equities worth nearly Rs 2,938 crore, reflecting their caution amid intensifying global trade tensions and geopolitical uncertainty. While domestic institutional investors provided some counterbalance, it was not enough to arrest the slide in benchmark indices. DIIs were net buyers of shares worth about Rs 3,666 crore on the same day, offering limited support to the market as foreign outflows remained the dominant force driving price action. 5. Technical charts point to further weakness Technical signals added to the bearish mood on Wednesday, as key benchmarks breached crucial support levels. “Benchmark indices fell sharply. Nifty closed down 353 points, while Sensex was down 1,066 points. Sectorally, all major indices were trading in the red, with the Realty index falling the most, dropping over 5%,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities. After a weak start, the market broke through the 25,500/83,000 support level, triggering further selling, said Chouhan. “A long bearish candle on the daily charts and a lower-top formation on intraday charts indicate further weakness from current levels. Although the intraday market structure is oversold, a sharp pullback rally from lower levels cannot be ruled out.” Chouhan suggested that as long as the market trades below 25,500/82,900, weak sentiment is likely to persist, with potential downside to 25,100–25,000/81,800–81,500. Anand James, Chief Market Strategist at Geojit Investments, said, “Favoured view expects extension of the downtrend, aiming for 24,715–24,580. Standard deviation studies allow intermittent upswing attempts aiming for 25,300/380, with the 200-day SMA in close vicinity. However, they are less likely to sustain unless the market moves above 25,470.” Traders were advised to sell between 25,350–25,400 with a tight stop loss at 25,500, and consider buying only between 25,050–25,000 if levels weaken further, with a stop loss at 24,900. (You can now subscribe to our ETMarkets WhatsApp channel) (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price ...moreless (You can now subscribe to our ETMarkets WhatsApp channel) (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price ...moreless Fly91’s bumpy climb mirrors why genuine airline startups struggle in India Indian IT finally stops window-shopping and heads to the M&A checkout Can this IPO-bound company step out of Flipkart’s shadow? FOMO or geopolitical safety net: What’s fuelling the gold ETF rush? Stock Radar: Tech Mahindra stock hits fresh 52-week high; time to buy or book profits? These large-caps have ‘strong buy’ & ‘buy’ recos and an upside potential of more than 25% 1 2 3