Sensex and Nifty Witness Bloodbath as Global Tensions Mount

Indian equity markets faced a severe downturn on Tuesday, January 20, 2026, leaving investors wary as major indices spiraled downward. Sensex and Nifty extended their losing streak, dropping over 1 percent due to heavy selling by foreign investors and rising anxiety over global trade wars.

Indices Hit a Rough Patch

Market sentiment took a massive hit as the BSE Sensex tumbled by 1,065.71 points to settle at 82,180.47. During intraday trading, the index fell even further, shedding over 1,200 points. Similarly, the Nifty50 tanked by 353 points to close at 25,232.50. This marks the steepest single-day decline for the index since April 2025, dragging it to its lowest closing level in three months.

Broader Market Bleeds Red

While the headline indices struggled, the pain was more acute in the broader market. Midcap and Smallcap stocks, often favorites among Odisha investors, underperformed significantly. The Nifty Midcap 100 and Smallcap 100 indices crashed by up to 3 percent. Real estate and technology shares were battered, with companies like Oberoi Realty and Newgen Software falling sharply.

Why is the Market Crashing?

Several factors contributed to this bearish trend:

• Global Trade Wars: Renewed uncertainty regarding US tariff policies and tensions between the US and Europe have made global investors nervous.
• FII Exodus: Foreign Institutional Investors (FIIs) have been relentless sellers, pulling out over Rs 3,200 crore on Monday alone. This marks ten straight sessions of outflows.
• Rupee at All-Time Low: The Indian currency depreciated to a record low of 90.97 against the US dollar, driven by high demand for dollars and geopolitical risks.
• Disappointing Earnings: Mixed quarterly results, particularly from IT major Wipro, dampened spirits in the technology sector.

Expert Take

Market analysts suggest that the volatility is likely to continue. With the Union Budget approaching on February 1 and the US Federal Reserve's policy decision pending, traders are advised to remain cautious. Support levels for the Nifty are currently seen around the 25,100 mark.