Sensex Plunges 1,400 Points in 2 Days, Nifty Below 25,200: Key Reasons for Market Decline

• Indian stock market faced heavy selling pressure for the second consecutive session, with Sensex falling over 1,400 points and Nifty50 dropping below 25,200.
• Key factors contributing to the decline include resurfacing trade-war concerns, mixed Q3 earnings, persistent selling by Foreign Institutional Investors (FIIs), and weak global cues.
• Trade-war worries intensified due to renewed uncertainty over US tariff policies and fears of escalation between the US and Europe, impacting global risk appetite.
• Q3 corporate earnings have been mixed, lacking positive surprises, while FIIs continued their selling streak, marking the 10th straight session of net outflows.
• Geopolitical risks are driving investors towards safe-haven assets like gold and silver, and caution prevails ahead of the Union Budget 2026 on February 1.

Why It Matters: Indian markets fell sharply due to global trade tensions, mixed earnings, FII selling, and pre-budget caution.