The Indian equity markets continued their downward spiral for the sixth straight trading session on Monday, January 12, succumbing to a potent mix of global headwinds and persistent foreign fund selling. The benchmark indices witnessed sharp declines, eroding a massive chunk of investor wealth over the past week.
A Prolonged Bear Phase Grips Dalal Street
The selling pressure remained relentless as the 30-share BSE Sensex plunged by over 500 points, or more than 0.60%, hitting an intraday low of 83,043. Mirroring this weakness, the broader Nifty 50 index also fell by 0.60%, dropping to 25,529 during the session. This marked the sixth consecutive day of losses, painting a grim picture for market participants.
The cumulative damage over these six sessions has been substantial. The Sensex has tanked over 2,700 points, which translates to a decline of more than 3%. The Nifty 50 index has shed an equivalent percentage of its value during the same worrying period.
The Staggering Wealth Erosion for Investors
The most direct impact of this sustained market correction has been the evaporation of investor wealth. The total market capitalisation of all companies listed on the Bombay Stock Exchange (BSE) witnessed a dramatic contraction. It fell to nearly ₹465 lakh crore from over ₹481 lakh crore recorded on January 2.
This sharp drop means that investors have collectively seen wealth worth more than ₹16 lakh crore get wiped out in just these six trading days. This significant erosion highlights the intensity of the sell-off and the prevailing risk-off sentiment among investors.
Key Factors Behind the Market Mayhem
Analysts point to a confluence of domestic and international triggers for the ongoing market weakness. The primary concerns weighing on sentiment include:
- Rising Geopolitical Tensions: Escalating conflicts in various parts of the world have increased global uncertainty, prompting investors to move away from riskier assets like equities.
- Concerns Over US Tariff Policies: Apprehensions regarding potential new trade tariffs and their impact on global economic growth and corporate earnings are causing anxiety.
- Relentless Foreign Capital Outflow: Foreign Institutional Investors (FIIs) have been net sellers in the Indian market, pulling out capital continuously. This persistent selling pressure is a major drag on index performance.
The market's trajectory remains highly sensitive to developments on these fronts. Investors are advised to monitor global cues and domestic economic data closely. As this is a developing story, market conditions can change rapidly, and further updates will provide clearer direction.
Disclaimer: This news report is for informational and educational purposes only. The views and recommendations mentioned are those of individual analysts or broking companies and do not represent the stance of Mint. Investors are strongly advised to consult with SEBI-certified financial experts before making any investment decisions, as market dynamics are fluid and individual circumstances vary.
