Sensex Plunges 500 Points from Day's High: 7 Key Reasons for Market Crash

Share Market
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CNBC Awaaz•21-01-2026, 16:04
Sensex Plunges 500 Points from Day's High: 7 Key Reasons for Market Crash
- •Sensex and Nifty deepened decline, with Sensex falling 1,056.02 points to 81,124.45 and Nifty slipping below 25,000 for the first time in over four months.
- •The market saw a sharp recovery after an initial decline but selling pressure re-emerged, causing Sensex to fall 500 points from its day's high.
- •Key reasons for the market fall include the Rupee hitting an all-time low of 91.28 against the dollar due to continuous dollar demand and geopolitical uncertainty.
- •Foreign Institutional Investors (FIIs) were net sellers for the 11th consecutive session, offloading shares worth ₹2,938.33 crore on Tuesday.
- •Weak global cues from Asian and US markets, a surge in India VIX, geopolitical concerns, sharp selling in banking stocks, and pressure on Midcap and Smallcap indices also contributed to the decline.
Why It Matters: Indian markets experienced a significant crash due to a weak rupee, FII selling, global cues, and geopolitical tensions.
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