Sensex Crashes 1,000 Points in 2 Days: ₹10 Lakh Crore Wiped Out

The Indian stock market remained under heavy selling pressure for the second consecutive session on Tuesday, January 20, amid weak global cues, rising geopolitical tensions and cautious investor sentiment ahead of key domestic events.

After falling nearly half a per cent in the previous session, benchmark indices extended their decline. The Sensex slipped over 600 points, or around 0.80%, to hit an intraday low of 82,614, while the Nifty 50 breached the 25,400 mark and fell to an intraday low of 25,361.

The broader market witnessed sharper selling, with the BSE Midcap and Smallcap indices declining more than 2% each, indicating widespread risk aversion across sectors.

In just two trading sessions, the Sensex has dropped close to 1,000 points, while the Nifty 50 has fallen over 1%. Investor wealth took a major hit as the total market capitalisation of BSE-listed companies declined by nearly ₹10 lakh crore, falling to around ₹458 lakh crore from about ₹468 lakh crore in the previous session.

Why Is the Indian Stock Market Falling Today?

1. Rising Global Trade War Fears

Global uncertainty has emerged as a key trigger for the recent sell-off. Investors are increasingly concerned about escalating geopolitical tensions after the US signalled a tougher stance on trade, including the threat of fresh tariffs on several European countries.

2. Mixed and Uninspiring Q3 Earnings

Corporate earnings for the December quarter have been mixed so far. While most companies have reported stable numbers, there has been a lack of strong positive surprises.

3. Heavy Selling by Foreign Investors

Foreign institutional investors (FIIs) have continued to sell Indian equities aggressively. So far in January, FIIs have sold shares worth over ₹29,000 crore in the cash market.

4. Shift Towards Safe-Haven Assets

Amid rising geopolitical and economic risks, investors are moving money away from riskier assets like equities and towards safe-haven options. Gold and silver prices have surged to record highs, encouraging investors to book profits in stocks and increase allocations to precious metals. 

5. Union Budget 2026 in Focus

Market participants are also cautious ahead of the Union Budget scheduled for February 1. 

Also Read: Best Long-Term Stocks in Jan 2026 – 5yr CAGR Basis!

Conclusion

The sharp fall in the Sensex and Nifty over the past two sessions reflects a combination of global trade war fears, heavy FII selling, mixed Q3 earnings and caution ahead of the Union Budget 2026. 

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