Sensex Slips 250 Points, Nifty Ends Below 25,750: Key Reasons Behind Market Fall

Indian equity benchmarks ended lower on Tuesday, January 13, after resuming their downward trend. The Sensex closed 250 points, or 0.30%, lower at 83,627.69, while the Nifty 50 slipped 58 points, or 0.22%, to settle at 25,732.30.

During the session, the Sensex fell over 600 points to an intraday low of 83,262.79, while the Nifty touched a low of 25,603.30. The BSE Midcap index declined 0.16%, but the Smallcap index outperformed, rising 0.46%.

US Tariff Concerns Continue To Weigh

Market sentiment remained weak due to ongoing uncertainty around US trade policies. Although hopes of an India–US trade deal have improved, there is still no clarity on timelines.

Reports suggested that no formal trade talks are scheduled this week. Meanwhile, US President Donald Trump has warned of imposing a 25% tariff on countries doing business with Iran, adding to global trade worries. 

Crude Oil Prices Move Higher

Crude oil prices rose over 1% amid rising tensions between the US and Iran. Iran is a major oil producer, and any escalation could impact global oil supply.

Higher crude prices are negative for India, as the country imports most of its oil. Rising oil costs can worsen India’s trade deficit and put pressure on inflation and government finances.

Persistent Foreign Investor Selling

Foreign institutional investors (FIIs) continued to sell Indian equities, adding pressure to the market. In January so far, FIIs have sold shares worth over ₹15,000 crore.

Between July and December last year, total FII outflows stood at nearly ₹1.85 lakh crore, keeping market sentiment cautious.

Mixed Start To Q3 Earnings Season

The December quarter earnings season has begun on a mixed note. IT majors like TCS and HCL Tech have given disappointing results.

Investors are now closely watching upcoming results from companies such as Infosys and Reliance. Any disappointment could lead to further weakness in the market.

Read more: Best Gold Stocks in India for January 2026: Titan, D P Abhushan, Thangamayil and More Based on 5-Yr CAGR.

Caution Ahead Of Union Budget 2026

Investors are also cautious ahead of the Union Budget. While pro-growth measures are expected, concerns remain over tighter fiscal discipline and possible limits on government spending.

Conclusion

The Indian stock market ended lower due to a mix of global and domestic factors, including US tariff uncertainty, rising crude oil prices, heavy FII selling, mixed Q3 earnings and Budget-related caution. While small-cap stocks showed resilience, overall sentiment remains guarded in the near term.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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