Sensex-Nifty Crash Erases INR 6 Lakh Crore: Analysts Warn of More Pain

- Nifty slips below 25,000 and Sensex cracks 1,000 points today. - U.S. vs. Greenland, Denmark & Europe trade tensions, weak domestic performance, and a depreciating rupee value are the reasons. - At 1 PM, the market made a comeback, but experts call it a short-term recovery.

Adepu Bindu

21 Jan 2026 — 3 min read

Sensex-Nifty Crash Erases INR 6 Lakh Crore: Analysts Warn of More Pain

The market sell-off on January 21, 2026, cost INR 6 lakh crore in total market capitalisation of all BSE-listed companies. BSE Sensex fell more than 1,000 points intraday, and the Nifty 50 dropped below the key 25,000 level. This happened for the first time in a long time (say, back in October 2025).

This drop is a force fall due to heating global geopolitical tensions (especially the Trump vs. Greenland situation), weak domestic earnings, rupee depreciation against the U.S. dollar, and more. Analysts fear that if resistance levels aren't regained, this downfall can go on. So, what's happening in the market? Any recovery so far? For all that, learn more.

- Nifty slips below 25,000 and Sensex cracks 1,000 points today. — Nifty slips below 25,000 and Sensex cracks 1,000 points today

Loss of Inr 6 Lakh Crore - Market Numbers From January 21, 2026, Sell-off

Metric	Value	Notes
BSE Sensex intraday low	81,124	Sensex fell over 1,000 points to this intraday low.
Nifty 50 intraday low	24,920	Nifty slipped below 25,000 during the session.
Sensex fall (intraday)	~1,056 points	The drop from previous levels down to the intraday low.
Nifty % fall	~1.2 %	Approximate percentage decline as markets softened.
Investor wealth erased	~INR 6 lakh crore	Market capitalisation loss on that sell-off day.
Opening Sensex	82,078.16	Sensex opened before the sell-off intensified.
Opening Nifty	25,215.55	Nifty at the start of the session.
Total market cap after fall	INR 449.76 lakh crore	BSE-listed companies’ combined market cap post-drop.

Factors Behind Today’s Indian Market Meltdown

Global Geopolitical Tensions (Trump vs. Greenland & Denmark)

Yesterday, U.S. and European markets faced a similar situation. The dollar weakened by 0.8% against the euro. European Stocks (Stoxx Europe 600) closed at 0.7% lower. Today, it was India's turn. Although Greenland is not directly related to the Indian market, the tensions have created panic, so investors are drawing back (risk-off sentiment) worldwide. Investors are moving towards safer assets such as gold.

Weak Domestic Earnings (India)

The earnings reports from major Indian companies didn't perform as expected, denting market confidence. The companies that performed well had to face share falls because the market analysts tagged them as having 'limited future growth potential.' This also struck the market at the same time.

Rupee Depreciation

The rupee is having a hard time, as its latest value fell (all-time low) to INR 91.74 against the US dollar. It's another layer of added stress affecting the market numbers today. The U.S.-Europe trade dispute is to blame.

Continued Foreign Selling

For the eleventh straight session, foreign institutional investors (FIIs) were net sellers. Their sales, especially, overwhelmed the domestic institutional buying. Therefore, there's a clear weak appetite from overseas buyers at the moment.

Recent Update and Expert Views...

At around 1 PM, the BSE Sensex made a comeback via bargain hunting and selective buying. There was a climb of about 170 points to an intraday high of ~82,350. At the same time, the Nifty 50 also recovered sharply to around 25,300. However, market experts say this is only a short-term recovery. For more updates on the same, keep in touch.