Why the Stock Market is Falling Today: Nifty Slips to 25,000, Sensex Cracks Over 1,000 Points

Indian equity markets continued their losing streak on January 21, extending Tuesday’s sharp sell-off. Weak global cues, rising trade-war worries and heavy selling across sectors weighed heavily on investor sentiment.

During intraday trade, the Sensex plunged over 1,000 points, while the Nifty slipped to the 25,000 level, falling nearly 1%.

Weak Global Cues Drag Markets

One of the key reasons for today’s fall is the negative global market environment. US markets declined sharply overnight, which set a weak tone for Asian markets as well.
Adding to the pressure are fresh concerns around a possible trade war, driven by geopolitical tensions involving the US and Europe.

Foreign Investors Continue Selling

Foreign institutional investors (FIIs) remained net sellers in Indian equities, extending their selling streak. Continuous foreign outflows have added to market pressure and limited any recovery attempts.

Sector-Wide Selling Intensifies

The decline was broad-based, with all sectoral indices trading in the red.
Stocks from automobiles, IT, metals and banking fell around 1%, while sectors such as IT, media, financial services and real estate declined over 2%.

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

Broader Market Underperforms

The broader market saw deeper cuts compared to the frontline indices. Both the BSE midcap and smallcap indices fell over 2%, reflecting heightened risk aversion among investors.

Conclusion

Markets are under pressure due to global uncertainty, trade-war fears and persistent foreign selling. 

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