Stock Market Crash: Investors Lose ₹17 Lakh Crore in 6 Days; 5 Key Factors Behind the Fall

The Indian stock market continued its downward slide on Monday, with both BSE Sensex and NSE Nifty 50 opening lower. Over the past six trading sessions, investors have seen a staggering ₹17 lakh crore wiped out from the markets amid domestic and global uncertainties.

On Monday morning, the Sensex fell over 500 points, touching an intraday low of 83,043, while the Nifty 50 slipped more than 140 points below the 25,550 mark. The Sensex had peaked at 85,762.01 on January 2, 2026, meaning it has dropped more than 2,718 points since then. Over the same period, the Nifty declined by approximately 3%, settling at 25,529.05. Analysts said this downturn followed the worst week for the market in three months, with investor sentiment further shaken by the lack of clarity from the U.S. Supreme Court on President Donald Trump’s tariffs.

Five Key Reasons for the Market Decline

1. Delays in U.S.-India Trade Deal & Tariff Uncertainty
   Analysts noted that delays in the India-U.S. trade agreement dampened optimism about domestic company performance. Uncertainty over U.S. tariffs triggered profit-booking among investors. Dr. V.K. Vijaykumar, Chief Investment Strategist at Geojit Investments, said the ongoing drama around the trade deal, coupled with inconsistent U.S. administration statements, has negatively impacted the market.
2. Continuous Foreign Institutional Investor (FII) Selling
   Sustained selling by foreign investors has exerted pressure on the market. On January 9, FIIs sold shares worth ₹3,769 crore, marking the sixth consecutive session of net outflows since a brief pause on January 2. This continuous exit reduced liquidity in the market, compounding investor concerns.
3. Weak Global Cues
   Global market signals have also been lackluster. Concerns over the independence of the U.S. Federal Reserve dampened risk appetite. Following comments by Fed Chair Jerome Powell about alleged threats from the Trump administration, U.S. equity futures fell, increasing nervousness among Indian investors.
4. Rising Crude Oil Prices
   Escalating crude oil prices have added further pressure. India imports a majority of its crude needs, making it vulnerable to geopolitical risks. Oil prices surged following a military operation in Caracas targeting Venezuelan President Nicolás Maduro and escalating protests in Iran, adding to market concerns.
5. Weak Technical Signals
   Technical indicators have confirmed the bearish trend. Key indices have broken critical support levels, and the sharp sell-off last week intensified downward pressure. Shrikant Chauhan, Head of Equity Research at Kotak Securities, noted that the market fell below the 20-day Simple Moving Average (SMA) and formed a long bearish candle on the weekly chart, signaling continued weakness. He added that as long as indices remain below key support levels, the risk of further decline persists.