Mumbai, Jan 23, 2026, 14:31 IST
- Sensex dropped roughly 800 points in afternoon trading; Nifty slipped beneath 25,100
- Investors dumped about ₹6 lakh crore in market value amid widening sell-off
- Overseas funds continued offloading shares, as traders focused on critical technical thresholds
Indian shares gave up early gains on Friday. The Sensex tumbled roughly 800 points, while the Nifty 50 slid below 25,100 as selling intensified into the afternoon.
The drop is significant because foreign institutional investors (FIIs)—overseas funds trading Indian stocks—have continued selling throughout January, despite companies posting quarterly results and some market valuations still running high.
A softer rupee and renewed selling in some major stocks have ramped up the tension. Traders pointed to key Nifty chart levels that often spark “automatic” sell-offs from momentum-driven strategies.
By 1:40 p.m. IST, the Sensex had dropped 744.59 points, or 0.9%, to 81,562.77, after earlier hitting a high of 82,516.27. The Nifty fell 227.90 points, also down 0.9%, to 25,062, sinking below its 200-day moving average — a key support level for many traders based on the past 200 sessions’ closing prices.
The Sensex dipped to an intraday low near 81,510, while the Nifty fell to roughly 25,043, dragging broader mid- and small-cap indices down as well. Market capitalization of BSE-listed companies shrank by about ₹6 lakh crore. The rupee hit a fresh low of 91.99 against the U.S. dollar, Livemint reported. VK Vijayakumar, chief investment strategist at Geojit Investments, noted, “FIIs are adding to the short positions on every rally,” referring to a “net short” stance aimed at profiting from price drops, mostly through derivatives. https://www.livemint.com/market/stock-market-news/why-is-the-market-down-sensex-crashes-800-points-investors-lose-about-6-lakh-crore-nifty-50-falls-explained-11769156312659.html
Moneycontrol reported, citing exchange data, that FIIs offloaded shares worth 2,549.80 crore rupees on Thursday, continuing their streak of net selling this January. This selling pressure has dragged the benchmarks down roughly 1.5% so far this week, the report added.
Earnings failed to provide a boost. Moneycontrol highlighted pressure on major players like ICICI Bank and HCL Technologies. Meanwhile, Eternal, InterGlobe Aviation, and SBI Life dragged the Nifty down, slipping up to 3% during the session.
Commodities remained under the spotlight. Brent crude climbed 0.8% to $64.57 a barrel, a rise that could squeeze India with steeper import bills and inflation concerns, particularly as the rupee weakens.
A burst of political and headline noise hit the market. Moneycontrol reported heavy selling in Adani group shares following news that the U.S. Securities and Exchange Commission asked a court to allow personal email summons to Gautam Adani and executive Sagar Adani. The summons relate to an alleged fraud and a $265 million bribery scheme.
The next move, however, remains uncertain. “The short-term trend is negative,” said Ruchit Jain, vice president at Motilal Oswal Financial Services, who identified immediate Nifty resistance near 25,400. He advised caution until a clear reversal appears, warning that a sharper drop below key levels could attract more sellers. https://www.moneycontrol.com/news/business/markets/sensex-falls-250-pts-from-day-s-high-nifty-below-25-300-key-factors-behind-market-rise-13787425.html
Asian stocks mostly edged up, while U.S. stock futures climbed slightly. Indian benchmarks, however, slipped, according to an Economic Times live update — pointing to domestic flows and stock-specific factors driving the action on Dalal Street.
Related articles: Stock Market
