Sensex Plunges 700 Points: 6 Reasons Behind India's Market Crash

Business
M
Moneycontrol•08-01-2026, 14:00
Sensex Plunges 700 Points: 6 Reasons Behind India's Market Crash
- •Indian stock markets saw a fourth consecutive day of decline, with Sensex falling over 700 points and Nifty below 25,900.
- •US President Donald Trump's proposed 500% tariffs on countries trading with Russia, potentially impacting India and China, triggered heavy selling in export-focused companies.
- •Continuous selling by foreign investors, totaling Rs 4,650 crore in January, exerted significant pressure on the market.
- •Weak global cues from Asian and US markets, coupled with geopolitical uncertainties, dampened investor sentiment.
- •Concerns over the India-US trade agreement, rising crude oil prices, and Sensex weekly expiry further contributed to the market downturn.
Why It Matters: Indian markets crashed due to US tariff threats, foreign investor selling, weak global cues, and trade uncertainties.
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