Sensex tanks 700 points: What's behind today's market crash?
What's the story
The Indian stock market witnessed a major downturn today, with the BSE Sensex plummeting over 730 points in the ongoing trading session. The Nifty 50 index also witnessed a sharp decline of over 250 points from its previous close of 26,140. The fall comes as metal stocks came under heavy selling pressure while oil and gas counters continued their downward trend.
Investor apprehension
Market sentiment remains cautious amid US tariff concerns
The market sentiment remained cautious amid fears of potential US tariff actions and continued foreign fund outflows. This overshadowed the optimism surrounding earnings growth. Both midcap and smallcap stocks also witnessed sharp losses, falling over 1% each. All sectoral indices were in the red, with metal and oil & gas stocks leading the decline by 2-3%.
Stock performance
Hindalco, ONGC lead Nifty 50 laggards
Shares of Hindalco, ONGC, Jio Financial Services, Wipro, Adani Enterprises, and JSW Steel were among the major laggards on Nifty 50. Hindustan Zinc, JSL, National Aluminium, and Hindustan Copper traded 4-6% lower. The decline dragged the Nifty metal index over 3%. Market breadth remained firmly negative with declines far outpacing advances.
Market volatility
114 stocks hit 52-week low, 41 locked in upper circuit
The market volatility was evident with as many as 114 stocks hitting their 52-week low. These included Page Industries, Colgate, Whirlpool, and UBL. Meanwhile, only a handful of stocks managed to touch their 52-week high during this period. On the BSE platform, Balaji Amines surged by an impressive 10%, while Trident and Alok Industries also made it to the list of top gainers for today.
Factors
Factors behind today's market decline
Foreign institutional investors (FIIs) sold equities worth ₹1,527.71 crore on Wednesday, extending their selling streak to a third straight session. So far in January, FIIs have offloaded shares worth around ₹5,760 crore, following record outflows in 2025. Export-focused textile and shrimp stocks fell sharply after Trump backed a sanctions bill proposing steep tariffs on countries trading with Russia. With Sensex weekly derivatives expiry due on Thursday, market volatility rose, pushing India VIX up nearly 9% to 10.83.