Indian equity markets came under pressure in the first trading session of the week, with benchmarks sliding across the board amid rising uncertainty over India-specific and global geopolitical developments, as well as concerns surrounding the US–India trade deal.
The benchmark
BSE Sensex declined as much as 715 points, or 0.85 per cent, to hit an intraday low of 82,861, while the
NSE Nifty50 shed 210 points, or 0.81 per cent, to touch 25,473.40 on Monday, January 12, 2026.
Kranthi Bathini, director of equity strategy at WealthMills Securities, attributed the decline to rising geopolitical upheavals, uncertainty surrounding the US–India trade deal, and sustained selling by foreign investors in Indian markets.
“The negative sentiment in Indian markets and the continuous sell-off by foreign portfolio investors have been creating pressure in the medium to short term. The trade deal remains a big overhang, along with the proposed tariffs. This is impacting sentiment on Indian markets. Global geopolitical issues are also weighing on markets. Additionally, as we enter the earnings season, investors are becoming cautious amid heightened uncertainty,” Bathini said.
At last check, the BSE Sensex was trading at 82,993, down 582 points or 0.70 per cent at 12:10 PM. The NSE Nifty50 was trading lower by 155 points or 0.60 per cent at 25,528.
Barring Trent, Asian Paints, Tata Steel, Hindustan Unilever, NTPC, and ICICI Bank, which were trading higher by up to 1.33 per cent, all other Sensex constituents were in the red. Larsen & Toubro, Adani Ports, Mahindra & Mahindra, Bajaj Finance, and Bharat Electronics were among the top laggards, falling up to 1.79 per cent.
Here are the key reasons behind the fall in Sensex and Nifty
Heightened geopolitical uncertainty, US tariff concerns
According to analysts, growing uncertainty around global geopolitical developments and concerns over US President Donald Trump’s plans to impose a 500 per cent tariff on countries importing oil from Russia weighed on market sentiment.
“The market has turned distinctly weak, weighed down by a series of India-specific and global geopolitical events. The drama surrounding the US–India trade deal is getting murkier with strange remarks from the US administration. This is impacting the market,” said VK Vijayakumar, chief investment strategist at Geojit Investments.
“Geopolitical developments in Venezuela, the crisis in Iran, and Trump’s threats regarding Greenland are also being viewed with concern. This has spiked the India volatility index (India VIX), indicating big volatility ahead,” he added.
Further, an expected ruling on Trump tariffs from the US Supreme Court on Friday did not materialise, and there is no clarity on when it will occur. Given that it could happen at any time, Vijayakumar said investors need to remain watchful.
Selling in heavyweights
Analysts also attributed the decline in benchmark indices to selling pressure in heavyweight stocks. Among Sensex constituents, Reliance Industries, the country’s largest company by market capitalisation, was trading lower by 1 per cent. HDFC Bank, Larsen & Toubro, Infosys, Mahindra & Mahindra, and Bajaj Finance were down up to 1.2 per cent.
FII selling
Persistent selling by foreign investors also dampened market sentiment. Foreign portfolio investors (FPIs) have once again turned net sellers in Indian equities. So far this year, FPIs have offloaded equities worth a net ₹11,786.82 crore.
India VIX soars
Meanwhile, the India VIX, which gauges market volatility, surged sharply on Monday, reflecting heightened uncertainty. It rose 9.33 per cent to an intraday high of 11.95 points. Though it cooled partially, it continued to trade higher. At last check, it was up 5.76 per cent at 11.56 points.
Technical outlook
According to Aakash Shah, technical research analyst at Choice Broking, the technical outlook for the benchmark Nifty50 remains weak due to the absence of fresh bullish triggers. Technically, the index needs to hold the 25,500–25,600 support zone to prevent further downside.
“For Nifty50, a sustained breakout above the 25,800–25,850 zone is essential to stabilise near-term momentum,” Shah said.
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(Disclaimer: The views and investment tips expressed by the analysts in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.)
 "Sensex falls 715 pts; Nifty below 25,500: Why are markets falling today?")
