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Indian Stock Market Continues Downward Trend Amidst Investor Concerns

The Indian stock market is experiencing a significant downturn, with both Sensex and Nifty trading in the red. Key factors contributing to this decline include heavy selling by foreign institutional investors, mixed quarterly results from major companies, and rising global trade war concerns. As the market continues to face pressure, investors are advised to stay vigilant amidst ongoing uncertainties. Despite the challenges, some experts suggest potential value buying opportunities at lower levels. Read on to explore the current market dynamics and implications for investors.
By Narendra Chaudhary Jan 20, 2026, 16:23 IST

Current Market Overview

On Tuesday, January 20, 2026, the Indian stock market experienced a continued decline. Both major indices, Sensex and Nifty, were trading in the red, with Sensex dropping by over 600 points and Nifty falling below the 25,400 mark.


Market Performance During Trading


  • Sensex: Trading around 82,600, down by over 600 points (some reports noted an intraday low of 82,568). This is significantly lower than the previous session's closing level of 83,246.


  • Nifty: Slipped below 25,400, reaching between 25,350 and 25,370. This reflects a decline of over 200 points from the last close of 25,585.


  • Wider market also saw significant declines: Midcap and Smallcap indices fell by 1.2% to 2%.


  • All sectoral indices were in the red: IT, banking, financial, and other key sectors faced pressure.



Key Reasons for the Decline


  1. Ongoing Selling by Foreign Institutional Investors (FII): January has seen heavy selling by FIIs, who have been net sellers for several days, putting pressure on the market. Recent days have witnessed sell-offs exceeding ₹20,000-30,000 crore.


  2. Mixed Results for Q3: Weak or disappointing results from several major companies have diminished investor confidence.


  3. Rising Concerns Over Global Trade Wars: News regarding tariff policies from U.S. President Trump and potential tariffs on Europe and other countries have impacted global markets, indirectly affecting India, especially in energy and commodity sectors.


  4. Weak Global Signals: Declines in Asian and U.S. markets have also influenced the situation.


  5. Technical Pressures: Nifty broke through a crucial support level (25,600), leading to increased selling.



Investor Advisory

This downward trend has persisted since the start of 2026, with the market down over 3% in January alone. Investors are advised to remain cautious, as global uncertainties and FII outflows may continue. However, some experts believe that value buying could emerge at lower levels.