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The BSE Sensex declines 769.67 points to close at 81,537.70, while the NSE Nifty falls by 241 points to trade below the 25,100 level to 25,048.65.
Stock Market Fall.
Why Is Share Market Falling Today? After a mildly positive opening, the domestic equities market faced selling pressure amid profit-booking. The BSE Sensex declined 769.67 points to close at 81,537.70, while the NSE Nifty fell by 241 points to trade below the 25,100 level to 25,048.65.
Among the 30 Sensex stocks, 24 ended the day in the red. Top losers were Adani Ports, Eternal, IndiGo, Axis Bank, and PowerGrid, falling by up to 7.52 per cent. However, gainers were Tech Mahindra, Hindustan Unilever, Infosys, Asian Paints, TCS and UltraTech Cement, rising by up to 0.71 per cent.
In the broader markets, the BSE MidCap and the SmallCap were trading lower by 1.56% and 2.19%, respectively.
What’s Dragged the Market?
Foreign fund selling remains a key overhang
Sustained selling by foreign institutional investors continues to pressure domestic equities. FIIs offloaded shares worth Rs 2,549.80 crore on Thursday, extending their selling streak to 13 straight sessions in January. So far this month, overseas investors have been net buyers only once, on January 2.
According to Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, the direction of foreign flows will hinge on earnings momentum. “The FII stance towards India will be determined by the trend in India’s corporate earnings. Higher earnings growth alone can ensure sustained buying by FIIs since they have the option to invest in other markets where valuations are cheaper and earnings are better. Since earnings growth is sometime away and the FII selling strategy is expected to continue, pre-empting any healthy rally, the market is heavily net short. FIIs are adding to the short positions on every rally triggered by some positive news. The broader market, where FII presence is limited, is likely to witness action in response to Q3 results.”
Earnings disappointment from index heavyweights
Weak quarterly results from key index constituents added to the pressure, with stocks such as ICICI Bank and HCL Technologies weighing on sentiment. Muted earnings performance from large-cap names has raised concerns over near-term profit growth and limited upside for benchmarks.
Geopolitical uncertainty clouds risk appetite
Markets remain jittery amid evolving global political developments. On Thursday, benchmark indices managed to snap a three-session losing streak, closing about 0.5 percent higher after US President Donald Trump signalled a softer stance on proposed tariffs against European nations and ruled out the use of force to seize Greenland.
However, the relief proved short-lived, with indices still down nearly 1.5 percent for the week so far. According to Reuters, Trump’s earlier remarks have unsettled European policymakers and raised broader questions about the reliability of transatlantic ties, keeping global investors cautious despite the temporary easing of tensions.
Rising crude oil prices add to macro worries
Higher crude prices also capped market gains. Brent crude rose 0.8 percent to $64.57 a barrel, stoking concerns over India’s trade deficit and inflation trajectory. Elevated oil prices tend to weigh on equities by squeezing corporate margins and complicating the macroeconomic outlook.
Sharp sell-off in Adani Group stocks
Adani Group shares came under heavy selling pressure after reports that the US Securities and Exchange Commission has sought court permission to personally serve summons to billionaire Gautam Adani and group executive Sagar Adani in connection with alleged fraud and a $265-million bribery scheme. The development rattled investor confidence and dragged related stocks lower.
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January 23, 2026, 13:44 IST
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