Indian Stock Market Plunges: Sensex Dips 500 Pts Amid Tariff Fears, FII Selling

Business
M
Moneycontrol•06-01-2026, 15:39
Indian Stock Market Plunges: Sensex Dips 500 Pts Amid Tariff Fears, FII Selling
- •Indian stock market fell for the second consecutive day, with Sensex dropping 500 points and Nifty below 26,150.
- •Profit booking in heavyweight shares like HDFC Bank, Reliance Industries, Trent, and Tata Motors Passenger Vehicles contributed to the decline.
- •US President Donald Trump's statements on increasing tariffs on India over Russian oil purchases fueled investor caution.
- •Foreign Institutional Investors (FIIs) sold shares worth over ₹3,000 crore in early January, impacting market sentiment.
- •Rising geopolitical tensions, including reports of Venezuelan President Nicolas Maduro's arrest, and increased India VIX added to market volatility.
Why It Matters: Indian markets fell due to profit booking, US tariff threats, FII selling, geopolitical tensions, and rising volatility.
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