Indian equity markets continued their decline for the sixth straight session, with the Sensex and Nifty slipping sharply amid rising global uncertainty, sustained foreign outflows and a shift towards risk-off assets.
BY PC Bureau
January 12, 2026: Indian equity benchmarks continued their downward march on Monday, underscoring a growing shift in market mood from optimism to caution. The Sensex and Nifty extended losses for the sixth straight session, with investors staring at an erosion of nearly ₹17 lakh crore in market value — a sharp reminder that the recent rally may have run ahead of fundamentals.
The BSE Sensex fell over 700 points to an intraday low of 82,864, while the NSE Nifty 50 slipped more than 150 points, breaching the 25,500 level. From its January 2 closing peak of 85,762.01, the Sensex has now declined over 2,700 points, while the Nifty is down around 3% over the same period.
This downturn follows the market’s weakest weekly performance in more than three months, with volatility rising and risk appetite fading. Total market capitalisation of BSE-listed companies has dropped by roughly ₹18.5 lakh crore in six trading sessions to about ₹462.68 lakh crore.
Market at day’s low, advance-decline ratio at 1:4,
Almost all sectoral indices are trading in the red,
Nifty on track to end lower for the 6th straight session pic.twitter.com/3IyqlF1SQR
— CapMint (@CapMintOfficial) January 12, 2026
What’s driving the sell-off?
1. Global policy uncertainty back in focus
Lingering ambiguity around US trade policy — particularly the absence of clarity on an India-US trade agreement and renewed tariff concerns — has unsettled investors. Comments and signals from the US administration, coupled with geopolitical flashpoints in regions such as West Asia and Latin America, have added to global nervousness, pushing up the India VIX.
2. Foreign investors stay on the sidelines
Sustained selling by foreign institutional investors continues to weigh on Indian equities. The steady outflow of overseas capital has tightened liquidity and amplified downside pressure, especially in large-cap stocks.
3. Weak global cues and risk-off sentiment
Global markets offered little support. US and European equity futures edged lower amid concerns over macroeconomic stress and questions around the independence of the US Federal Reserve. Investors gravitated towards bonds, with US Treasury yields easing as expectations of future rate cuts grew.
4. Flight to safe havens gathers pace
Heightened geopolitical and policy risks have triggered a shift away from equities towards safe-haven assets. Gold and silver prices surged sharply, with MCX gold futures hitting record highs and international gold crossing the $4,600-per-ounce mark — a clear signal of risk aversion.
5. Earnings season anxiety
The ongoing Q3 earnings season has added another layer of caution. With heavyweight companies in IT, banking and energy set to announce results over the coming days, markets are bracing for potential disappointments. Even as analysts expect broadly healthy earnings, stretched valuations leave little room for negative surprises.
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Is this a correction or something deeper?
Market experts see the current decline as a corrective phase rather than a breakdown. According to Jigar S. Patel of Anand Rathi Shares and Stock Brokers, the Sensex has slipped below key support levels and is now drifting towards its 200-day exponential moving average near 82,300 — a zone that has historically attracted long-term buying. Momentum indicators are nearing oversold territory, suggesting selling pressure could ease around these levels.
Technical analysts advise investors to resist panic and instead view the dip as an opportunity to selectively accumulate quality stocks over time. In the near term, a stabilisation around support levels could pave the way for a modest rebound, though volatility is likely to remain elevated.
The current market slide reflects a broader reset after a strong run-up — driven by global uncertainty, persistent foreign outflows and caution ahead of earnings. For investors, the message is clear: stay selective, manage risk carefully, and avoid aggressive bets until clearer signals emerge at home and abroad.
