Share Market Crash: These 5 reasons led to a huge fall in the stock market!

News Topical, Digital Desk : Share Market Crash: The Indian stock market witnessed a steady decline on Tuesday, January 6, 2026. Profit-booking by investors in select blue-chip stocks and selling by foreign investors kept the market under pressure. During trading, the BSE Sensex fell 479.58 points to below 85,000, while the NSE Nifty traded near 26,000 (Stock Market Today).

Share Market News: Profit booking
A major reason for the fall in the market was profit booking in heavyweight stocks. HDFC Bank, the largest stock in the benchmark index, fell by nearly 2 percent. The stock has fallen by more than 4 percent in the last two sessions. This fall was due to profit booking after the provisional business update issued by the bank for the third quarter of the financial year 2026. The bank recorded 11.9 percent loan growth and 11.5 percent deposit growth on a year-on-year basis in the December quarter. According to Nomura analysts, the slow pace of deposit growth limited the lending growth in this quarter as the credit-deposit ratio reached almost 100 percent. The report said that the bank will need strong deposit inflow to increase loan growth in the future. Tariff News Update The second major reason was the increased concerns regarding tariffs. US President Donald Trump said that tariffs on India could be increased if it does not comply with Washington's demands regarding the purchase of crude oil from Russia. His statement increased investor concern and negatively impacted the market. The third reason was FII Outflows (FII Data). Foreign institutional investors sold shares worth ₹362.5 million on Monday. Continuous selling by foreign investors reduces market liquidity and weakens investor confidence. Geopolitical tensions: The fourth reason was geopolitical tensions. Global uncertainty increased following the arrest of Venezuelan President Nicolas Maduro, which also impacted Indian market sentiment. Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments, said that investors need to be cautious amid increased uncertainty and maintain a strong cash position to take advantage of sudden market fluctuations. Stock Market News: The fifth reason was increasing market volatility. The India VIX rose more than 2 percent, closing higher for the third consecutive session. The index has risen more than 10 percent in three days, reflecting growing investor anxiety and expectations of sharp market volatility. 
 

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