Indian equity benchmarks witnessed a sharp decline in early trading on Monday, January 12, 2026, as investor sentiment was hit by a combination of foreign capital withdrawal and heightened global trade concerns.
Market Opening Sees Sharp Sell-Off
The sell-off was pronounced from the opening bell. The benchmark 30-share BSE Sensex dropped a significant 455.35 points to settle at 83,120.89. Mirroring the downtrend, the broader 50-share NSE Nifty tanked 135.35 points to reach 25,547.95.
Key Factors Behind the Market Fall
Market analysts pointed to two primary triggers for the day's weakness. The most immediate pressure came from sustained foreign portfolio investor (FPI) outflows. Overseas funds have been pulling money out of Indian equities, creating a supply overhang in the market.
Compounding this issue were renewed trade-related concerns on the global front. Fears of escalating trade tensions between major economies and potential disruptions to supply chains prompted investors to adopt a risk-off approach, moving away from emerging markets like India.
Implications and Market Outlook
The twin pressures highlight the sensitivity of Indian markets to global capital flows and international trade dynamics. The early trade data suggests a day of high volatility as domestic institutions and retail investors assess the situation. Market participants will be closely watching for any intervention or supportive commentary from authorities, as well as further cues on foreign fund activity.
This downturn serves as a reminder of the interconnected nature of global finance, where developments thousands of miles away can swiftly impact local bourses. The focus now shifts to whether domestic buying can cushion the fall or if the negative momentum will persist through the trading session.
