Sensex Slides 2,200 Points in 5 Days: Key Reasons Behind the Stock Market Fall

Indian stock markets continued their downward trend for the fifth straight session on Friday, January 9. The Sensex fell over 600 points during the day to hit an intra-day low of 83,547, while the Nifty 50 slipped nearly 0.8% to 25,681.

Over the last 5 trading sessions, the Sensex has lost more than 2,200 points, or around 2.6%. The Nifty 50 has declined by about 2.5% during the same period. Midcap and smallcap stocks were also under pressure, with both indices falling over 1%.

Global Worries Around US Supreme Court Ruling

Investors are closely watching a key US Supreme Court decision related to former President Donald Trump’s “Liberation Day” tariffs.

If the court rules against Trump, markets may get some relief. However, a ruling in his favour could hurt sentiment, as it may encourage stricter and more aggressive trade tariffs.

Fresh Fears of Higher US Tariffs

Adding to global concerns, there are fears that the US could impose very high tariffs on countries buying Russian oil. Reports suggest tariffs could go as high as 500%, which has increased uncertainty in global markets and made investors more cautious.

Caution Ahead of Q3 Corporate Results

Back home, investors are waiting for key Q3 earnings announcements. Companies like DMart are set to report results soon, followed by IT majors such as TCS and HCL Tech.

Continuous Selling by Foreign Investors

Foreign institutional investors (FIIs) have been steadily selling Indian equities since July last year. So far in January, they have sold shares worth over ₹8,000 crore in the cash market.

This ongoing foreign outflow was a major reason for muted market returns in 2025 and remains a key risk for the markets in 2026 as well.

Uncertainty Over India-US Trade Deal

Unclear progress on an India-US trade agreement is also weighing on investor confidence. Despite several rounds of talks, both countries have failed to finalise a deal, contrary to expectations.

Also Read: Best Gold Mutual Funds in India for Jan 2026!

Other Factors Adding Pressure

Apart from these issues, geopolitical tensions, volatile crude oil prices, and a weakening rupee are also contributing to the ongoing market correction.

Conclusion

The recent fall in the Sensex and Nifty is driven by a mix of global uncertainty and domestic caution. Until clarity emerges on US trade policies, Q3 earnings, and foreign fund flows, markets may remain volatile in the near term.

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