he markets are under significant selling pressure in the afternoon trade today, January 23. Both the benchmark indices – Sensex and Nifty plunged deeper into the negative territory. In the intraday trading session, the Sensex tumbled over 750 points, or 0.9%. On the other side, the Nifty slipped below 25,100, down over 200 points, or 0.9%.
The broader markets also saw heavier losses in the intraday trading session today. The BSE smallcap stocks declined about 1%, while mid-cap stocks dropped close to 1.8%
Let’s take a look at the key factors that triggered the sharp decline during the session.
Heavy selling in key stocks drags benchmarks
One of the reasons for the market fall was sharp selling in heavyweight stocks. Several Sensex constituents came under pressure, pulling the index lower.
Shares of Axis Bank, Power Grid, IndiGo, Adani Ports and Eternal were among the top losers in afternoon trade, with losses ranging from over 2% to more thn 6%.
Sector-wide weakness adds to pressure
The selling pressure was not restricted to a single sector. On a sectoral basis, auto, media, financials, realty, and oil and gas stocks were trading in the red during intraday trade. Realty stocks, in particular, were down over 2%.
Foreign investor selling continues
Another major factor behind today’s fall is continued selling by foreign institutional investors. Foreign investors have been net sellers of Indian equities for the 13th straight session in January, which has kept markets under constant pressure.
Even as domestic institutional investors have been buying, their support has not been enough to fully offset the impact of persistent foreign outflows.
Early profit-booking at higher levels has further added to the weakness, especially after the recent market rally.
Earnings worries and global cues weigh on sentiment
Weak quarterly earnings from select companies have also dampened market sentiment.
At the same time, rising global crude oil prices have raised concerns about inflation and input costs, adding another layer of caution for market participants.
Sustained FII selling keeps markets under pressure
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Investments, said, “The pattern of sustained foreign institutional investor selling and domestic institutional investor buying which dominated the market trend in 2025 has been continuing in 2026, too, so far.” He added that investors are closely watching whether this trend will change in the coming weeks.
Dr. Vijayakumar further noted that the upcoming Union Budget could provide some clues, but earnings will play a bigger role. “More importantly, the foreign institutional investor stance towards India will be determined by the trend in India’s corporate earnings,” he said, adding that stronger earnings growth is essential for attracting sustained foreign inflows.
He also pointed out that since earnings growth may take time, foreign investors could continue their selling strategy, limiting any sharp market recovery. According to him, broader markets, where foreign investor participation is lower, may see stock-specific action driven by December quarter results.