Nifty and Sensex fell sharply in recent days.

The Nifty and Sensex have both fallen dramatically in recent days, responding to global trade concerns and domestic pressures. The Nifty is currently trading at around 25,053, down approximately 0.7% today, while the Sensex is at 81,368, down more than 1%. During instances of increasing volatility, investors eroded market value by billions of dollars.

Recent Performance

On 20 January, the Sensex closed at 82,180, down 1,065 points, and the Nifty fell 353 points to 25,232. Over five days, the Sensex lost over 2,300 points and the Nifty lost 2.5%, wiping out nearly Rs 18.5 lakh crores in market value. Today's continuing decline shattered key supports, sending both indices to three-month lows.

Key Triggers

Foreign institutional investors continued to sell aggressively, offloading billions despite weeks-long outflows that reduced liquidity. Disappointing quarterly profits from heavyweights like Reliance and IT businesses sparked widespread selling, and disappointing guidance added to margin fears. Technical problems hastened the collapse, with algorithms triggering stop-losses whenever support failed.

Global Influence

US President Donald Trump's tariff threats against Europe and trade negotiations intensified global risk-off attitude, which spread to Indian markets. Soft indicators from Asian and European markets, mixed with rupee depreciation and Japan bond fears, exacerbated the pressure. Geopolitical overhangs, particularly policy shifts, pushed India's VIX higher and extended the fall.

Sector Impacts

IT equities led falls due to global demand concerns and cautious outlooks, pulling indexes down. Financials, consumer discretionary, industrials, and smallcaps all saw significant losses, with Nifty Bank down over 1%. Heavyweights such as Axis Bank, Infosys, and M&M increased losses during tumultuous sessions.