Nifty sinks below 25,300, Sensex lowest in 3 months: Why are markets down?

US President Donald Trump's claims over Greenland have added to global uncertainty, pressuring stock markets worldwide, analysts said

Indian benchmark indices extended the rout to fall to the lowest in over three months on Tuesday, taking cues from their global peers as tensions over the control of Greenland only escalated. 

 

On Tuesday, the Nifty index fell as much as 1.61 per cent, or 413 points, to 25,171.3, while the 30-stock Sensex slipped 1.4 per cent, or 1,235 points, to 82,010.58, the lowest since October 2025. Nifty and Sensex indices ended 1.38 per cent and 1.28 per cent lower, respectively.  

Since hitting a life high on January 5 this year, the Nifty has fallen by 4 per cent, while the Sensex is down 3,710 points from the same date.

 

 

During the session, the market breadth remained weak on the BSE. Out of 4,314 stocks traded on the BSE, only 780 advanced versus 3,395 declines, underscoring broad-based selling beneath the index level. Around 139 stocks remained flat.

 

All sectors were seen trading with losses on Tuesday, with Realty (down 4.5 per cent) and Consumer Durables (down 2.4 per cent), leading the fall.   CATCH STOCK MARKET UPDTES TODAY LIVE 

The earnings season has failed to enthuse investors, while geopolitical tensions continue to escalate, Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said. The 25,500 level was a crucial short-term support for the market, and its breach has led to heightened selling pressure. "The sentiment remains negative at this point." 

Why are Indian stock markets falling?

Control over Greenland: Investors' sentiment worsened after US President Donald Trump's latest tax levy on European countries over Greenland. Trump levied a 10 per cent tariff on eight European countries, effective February 1, rising to 25 per cent in June, as they opposed his plans to acquire Greenland. 

 

In response to Trump's statements, European governments are considering retaliatory tariffs and broader economic countermeasures against the United States.

 

Global markets tumble: US future indices fell sharply in the pre-market session as risk-off sentiment increased amid renewed trade tension between the US and Europe. The Dow Jones futures slumped 659 points to 48,888, and the S&P 500 fell 95.75 points to 6881 as of 1:42 PM.

 

Most markets in Asia ended lower on Tuesday, with Japan's Nikkei, down 1 per cent, leading the fall. Safe-haven assets, including gold and silver, continue to trade firmly, while the rupee hovered near record low levels. 

 

US President Donald Trump's claims over Greenland have added to global uncertainty, pressuring stock markets worldwide, said Kranthi Bathini. 

 

Muted Q3 show: The results of early-bird companies in October-December 2025 (Q3FY26) have shown just single-digit growth in revenue despite gains from cuts in goods and services tax (GST) rates.

 

Combined net profits were ₹98,621 crore in Q3FY26, up from ₹95,328 crore in Q3FY25 but a decline from around ₹1 trillion in Q2FY26. This is the worst performance on earnings by these early-bird companies in at least 17 quarters.

 

FPI selloff: Foreign portfolio investors (FPIs) continued to offload Indian equities with a total selling of ₹27,073 crore so far this month. This comes after FPIs ended 2025 with a net selling of ₹1.66 trillion. FPIs have been consistent sellers, which has further weighed on sentiment, Bathini noted. Investors are currently in a wait-and-watch mode and are not building fresh positions.