Panic Selling: Nifty-50 Plunges 353 Points; What's Next for the Stock Market?

• Nifty-50 dropped 353 points (1.38%) to 25,232.50 on January 20, 2026, largely due to panic selling.
• Panic selling is when investors rapidly sell assets due to fear, rumors, or overreaction, leading to sharp price drops driven by emotion.
• Today's decline was influenced by global trade tensions, significant FII selling ($3 billion in January), mixed earnings, and a weak rupee.
• Retail traders are more prone to panic selling due to emotional decisions and lower risk tolerance, unlike institutional investors who follow long-term strategies.
• After panic selling, markets typically remain volatile but historically tend to recover, though the timeline varies based on the underlying cause.

Why It Matters: Panic selling, driven by fear and global events, caused a sharp Nifty-50 drop; recovery timeline uncertain.