Sensex, Nifty Plunge Over 4% in January Amid FPI Sell-off, Weak Rupee, Geopolitical Risks

• India's benchmark indices, Sensex and Nifty, have fallen over 4% in January.
• Key factors include persistent foreign fund outflows (FPI sell-off), a weaker rupee, and geopolitical risks.
• The rupee hit a historic low of 92 against the US dollar on January 23, slumping over 2% this month.
• Elevated crude oil prices, rising global bond yields, and disappointing Q3 earnings also contributed to investor caution.
• Market participants hope for a post-Republic Day recovery leading up to the Union Budget 2026-27.

Why It Matters: Indian markets saw a significant January decline due to FPI selling, weak rupee, and global uncertainties.