Why did the Nifty 50 and BSE Sensex fall to three-month lows on January 21, 2026?

The indices fell due to weak global signals, trade and geopolitical worries, and consistent selling by foreign investors.

Which sectors were most affected by the market downturn on January 21, 2026?

Banking, financial services, and real estate stocks were among the worst performers, along with IT companies.

What is the impact of foreign investor selling on Indian stock markets as of January 2026?

Continued selling by foreign investors has weakened market sentiment, contributing to price declines and volatility.

Home / Business and Economy / Indian Markets Tumble: Global Woes Hit Home

Indian Markets Tumble: Global Woes Hit Home

21 Jan

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Summary

Benchmark indices hit three-month lows on Wednesday.
Weak global cues and foreign investor selling fueled the decline.
Banking and IT stocks weighed heavily on market sentiment.

Indian Markets Tumble: Global Woes Hit Home

Benchmark stock market indices in India concluded Wednesday's trading session with notable declines, extending the sharp losses experienced the previous day. Both the Nifty 50 and the BSE Sensex touched fresh three-month lows, reflecting a cautious market sentiment heavily influenced by negative global signals.

Persistent worries surrounding international trade disputes, geopolitical tensions, and continuous selling by foreign institutional investors have exacerbated the downward pressure on Indian equities. These global factors, including rising tensions involving the US and the EU, have particularly impacted emerging markets.

Weak quarterly earnings from key banking and IT companies further weighed on the market. Heavyweights such as Reliance Industries and ICICI Bank reported results that failed to meet investor expectations. The declining value of the rupee and uncertainty surrounding trade relations are expected to maintain market volatility.