Sensex Falls Over 400 Points, Nifty Slips Below 25,600 as Market Selloff Deepens

12 January 2026 | Morning Trade

Indian equity markets opened sharply lower on Monday, extending last week’s selloff amid weak global cues and rising domestic uncertainty. The Sensex fell more than 400 points, while the Nifty 50 slipped below the 25,600 mark in early trade. Volatility also increased, with India VIX jumping nearly 9%, signalling heightened investor nervousness.

The latest decline has erased nearly ₹17 lakh crore in market capitalisation over the past six sessions, leaving investors cautious at the start of the week.

What Is Driving the Market Weakness:

Market participants pointed to a mix of global and domestic factors weighing on sentiment. Concerns over global trade, political uncertainty in the United States, and cautious positioning ahead of key global data have kept risk appetite low.

Friday’s session had already set a weak tone, with benchmarks extending their losing streak to a fifth straight day. A brief rebound at the open failed to sustain, as selling pressure returned quickly.

On Friday, the BSE Sensex declined 604.72 points (0.72%) to close at 83,576.24, while the NSE Nifty 50 fell 193.55 points (0.75%) to end at 25,683.30.

Volatility Picks Up

The sharp rise in India VIX, often called the market’s fear gauge, reflects growing uncertainty among traders. Higher volatility typically indicates expectations of larger market swings in the near term, prompting many investors to reduce exposure or stay on the sidelines.

Global Market Cues Remain Mixed Overnight cues from global markets offered little support.

• S&P 500 futures were down 0.5% in early Asian trade
• Nikkei 225 futures rose sharply by 3.5%
• Australia’s ASX 200 edged up 0.3%
• Hang Seng and Shanghai Composite traded marginally higher
• European futures were largely flat The mixed global setup has added to uncertainty rather than providing clear direction.

Stock-Specific Action: DMart Rises, Tejas Networks Slides

Amid the broader weakness, DMart shares rose around 3% after its parent company, Avenue Supermarts, reported a 13% year-on-year rise in Q3 net profit and an 18.3% jump in overall profit. Revenue grew by 13.3%, though analysts flagged concerns around slowing growth in certain segments. Brokerages remained divided, with some maintaining a ‘hold’ while others reiterated a ‘buy’.

On the other hand, Tejas Networks shares fell nearly 8%, hitting a 52-week low, after the company reported a wider loss for the December quarter. Revenue declined sharply by 88% year-on-year, triggering heavy selling in early trade.

What Investors Should Watch Next

Market experts advise caution in the near term, as volatility is likely to remain elevated. Key triggers to watch include:

• Global trade and geopolitical developments
• Signals from US markets and political developments in Washington
• Domestic corporate earnings announcements
• Movement in volatility indicators like India VIX

Until clarity emerges, investors may continue to prefer selective buying and defensive positioning.