Rs 10 lakh crore wiped out as Sensex, Nifty log worst fall since May 2025; what’s next?

Domestic equity benchmarks closed Tuesday’s session in the red, extending the ongoing weakness. The Sensex declined in 10 of the 13 trading sessions so far in 2026, while the Nifty has ended lower on 12 sessions. Tuesday’s sell-off marked the steepest single-day  percentage fall for the benchmarks since May 13, 2025.

At close, the Sensex plunged 1065.71 points, or 1.28 per cent, to settle at 82,180.47. The Nifty slipped 353 points, or 1.38 per cent, to end at 25,232.50.

The domestic indices suffered a steep decline, erasing around Rs 10 lakh crore in BSE market capitalisation. Investor wealth, as reflected in the BSE’s market cap, fell to Rs  455 lakh crore, down from Rs 465 lakh crore recorded on the previous Monday, January 20.

Bajaj Finance emerged as top loser on the Sensex, falling 4.14% to Rs 931. Eternal followed with a 3.63% decline, while Sun Pharma, IndiGo, Asian Paints, and Trent Bank fell 3.08%, 3.05%, 2.84% and 2.84%, respectively. 

Foreign Portfolio Investors (FPIs) have continued to stay on the selling side, with outflows accelerating since the beginning of the year. So far in 2026, overseas investors have pulled out more than Rs 29,300 crore from the domestic equity markets.

Five stocks, namely Reliance Industries (RIL), Bajaj Finance, Mahindra & Mahindra (M&M), Infosys and Larsen & Toubro, contributed heavily to the Sensex’s fall.      

Among sectoral indices, the BSE Realty index plunged 5.21% to close at 6,178.99, while the BSE Capital Goods slipped 2.76% to settle at 62,420.06.

In the BSE 100 index, shares of Havells India and Indian Hotels hit a fresh 52-week low of Rs 1,347.10 and Rs 646.95, respectively.

Overall, of the 4,402 actively traded BSE stocks, 786 closed higher, 3,496 declined, and 120 remained unchanged. During the session, 65 stocks touched their 52-week highs, while 713 fell to 52-week lows. Meanwhile, 126 scrips hit their upper circuits, and 282 were locked in lower circuits.

“Continued FII outflows, rising U.S. and Japanese bond yields, and a weakening rupee weighed on investor confidence.  Mid- and small-cap stocks underperformed the benchmarks, and sentiment was broadly negative across all sectors. In near term, market sentiment will hinge on the earnings season, while geopolitical developments and global trade conditions remain important influences," Nair said.