Sensex Crashes : India’s stock market is going through one of its toughest weeks in recent months. The Sensex and Nifty 50 extended their losing streak for the fifth consecutive session on Friday, rattling investor confidence and wiping out significant market wealth.
The benchmark Sensex slipped nearly 700 points during the session to touch an intraday low of 83,506, while the Nifty 50 dropped to 25,665. Over just five trading sessions, the Sensex has shed more than 2,200 points and the Nifty has fallen around 2.5 percent.
Midcap and smallcap stocks, often seen as a measure of broader market health, also remained under pressure, with both indices losing over one percent.
So what exactly is driving this sharp fall? The answer lies in a combination of global worries and domestic caution.
Global Uncertainty Keeps Investors on Edge
US Supreme Court Ruling in Focus
Global markets are closely watching a key ruling from the US Supreme Court related to former President Donald Trump’s controversial “Liberation Day” tariffs. Investors fear that a verdict favouring Trump could give him more room to pursue aggressive trade measures.
Such a move would add fresh stress to global trade and hurt emerging markets like India, which depend heavily on stable global demand and investor confidence.
Fresh Fears of US Tariff Hikes
Concerns have deepened after reports that Trump has backed a new Russia sanctions bill that could push US tariffs as high as 500 percent on countries buying Russian oil. This has sparked anxiety across financial markets, as such steps could disrupt energy supply chains and push inflation higher worldwide.
For India, which imports a large portion of its crude oil, any sharp change in global energy trade could directly impact inflation, the rupee, and corporate profits.
Earnings Season Adds to Market Nervousness
Q3 Results Under the Scanner
Back home, investors are treading carefully ahead of the December quarter earnings season. Major companies like DMart, TCS, and HCL Technologies are set to announce their results in the coming days.
After several quarters of muted profit growth, markets are expecting a recovery. If earnings fail to meet expectations, it could lead to a fresh wave of selling, especially by foreign investors.
Foreign Investors Continue to Pull Out
FIIs Remain Net Sellers
One of the biggest drags on the Indian market has been the steady outflow of foreign money. Foreign Institutional Investors (FIIs) have been net sellers since mid-2025, and the trend has continued into the new year.
So far this month, FIIs have already sold Indian equities worth more than ₹8,000 crore. This persistent selling has kept a lid on market rallies and weakened investor sentiment.
Market experts warn that unless foreign inflows return, Indian stocks may struggle to regain momentum in the near term.
India–US Trade Deal Still in Limbo
Another factor weighing on the market is uncertainty over the India–US trade agreement. Expectations were high that India would be among the first countries to strike a deal with Washington, but negotiations have dragged on without a breakthrough.
The lack of clarity is making investors cautious, especially as global trade policies become more unpredictable.
Other Headwinds Add Pressure
Apart from these major factors, geopolitical tensions, rising crude oil prices, and a weakening rupee are also contributing to the market’s weakness. Together, they create a challenging environment for both investors and companies.
What Should Investors Watch Now?
The coming days will be crucial. The US Supreme Court decision, corporate earnings from large Indian companies, and the trend in foreign fund flows will largely determine whether the market stabilises or slips further.
For now, volatility remains high, and experts advise investors to stay cautious and focus on fundamentally strong stocks rather than short-term market moves.