Overview
- The Nifty 50 fell about 2.5% and the Sensex roughly 1.9% over the first eight sessions of 2026, marking the weakest new‑year start since 2016.
- From recent peaks, the Sensex and Nifty are lower by roughly 7–9%, while BSE market capitalisation has eroded by an estimated ₹18–22 lakh crore.
- Foreign investors remained net sellers in January, with estimates ranging from about $1.3 billion to as much as $4–6 billion, extending 2025’s ~$19–20 billion outflows.
- Mid‑ and small‑cap indices have dropped 10–14% from highs, and intraday swings of 700–1,000 Sensex points highlight elevated volatility and technical breakdowns.
- Analysts cite geopolitics, tariff uncertainty and uneven earnings visibility for the risk‑off tone, but emphasize resilient domestic fundamentals and advise a quality, large‑cap tilt ahead of the Union Budget.