Why Sensex, Nifty Slipped Below 25,000 Today — Stock Market Fall Explained

Indian stock markets remained under pressure on Wednesday, stretching losses into a third session as both global developments and domestic cues weighed on sentiment.

The slide gathered pace as the session progressed. What began as a tentative, slightly lower opening soon turned into a sharper fall, especially once the benchmarks slipped below levels traders had been closely watching.

At one point during the day, the BSE Sensex was down more than 1,000 points, underlining how quickly sentiment had soured. The Nifty 50 also cracked the 25,000 mark, a level it had managed to hold since October 2025, adding to the nervousness on Dalal Street.

At its intraday low, the Sensex stood at 81,124, down 1,056 points from the previous close. The Nifty fell about 1.2% to 24,920, marking its weakest point in more than three months.

Earlier in the day, losses had looked manageable. The Sensex opened 102 points lower at 82,078.16, while the Nifty started at 25,215.55, down just 17 points. That calm did not last long as selling spread across large-cap stocks.

By the afternoon, the damage was evident. Nearly ₹6 lakh crore was wiped off investor wealth in a single session, dragging the combined market value of BSE-listed companies down to about ₹449.76 lakh crore.

What Changed Sentiment During the Day?

A large part of the pressure came from overseas cues. Asian markets were already trading lower for a third straight session, tracking sharp losses in the US overnight.

Fresh uncertainty emerged after US President Donald Trump revived talk around acquiring Greenland and hinted at tougher trade measures against the European Union. Investors grew concerned that these remarks could trigger new trade tensions, adding to an already unsettled global market.

Wall Street had closed with losses of more than 2%, while the US dollar weakened sharply, recording its biggest fall in over a month. For emerging markets like India, this combination is making investors more cautious.

Did Earnings Offer Any Support?

Back home, Corporate results offered little relief, with the ongoing earnings season proving uneven. Some large companies reported numbers that disappointed investors.

Shares of major companies, including Reliance Industries Ltd. and ICICI Bank, fell after their earnings, adding to concerns about high market expectations.

Technology stocks were among the worst performers. The IT index fell about 1%, as concerns around demand and valuations resurfaced. Persistent Systems slid nearly 3.5%, even though it reported higher quarterly profit, after brokerages flagged limited upside at current levels.

Why is the Rupee Adding to Worries?

The currency market sent another warning signal. The Indian rupee slipped to a fresh record low, moving past its earlier low of 91.0750 per US dollar and trading near 91.2950.

So far this month, the rupee has weakened about 1.5%, extending its decline in 2025 to nearly 5%. For equity investors, a falling currency raises concerns around imported inflation and foreign fund flows.

The Reserve Bank of India (RBI) has stepped in only to curb sharp swings in the rupee, without signalling any intent to defend a particular level.

What Investors Are Watching?

Foreign investors kept selling shares for the 11th day in a row. On Tuesday, January 20, they sold stocks worth around ₹2,938 crore, adding pressure on big companies’ shares.

Traders said the selling increased after the Nifty dropped below 25,500 and the Sensex fell under 83,000, levels that had been holding up recently. With these supports gone, it became harder to find buyers, though some pointed out the drop happened very quickly.

Now, investors are being careful for now. They are watching global events and upcoming company results to see if the market will start to improve.