Stock Market Crash: These 5 reasons are why the stock market is declining, with both Sensex and Nifty crashing.

News Topical, Digital Desk : Stock Market Crash: The Indian stock market plunge deepened on Monday, January 12th. Both the BSE Sensex and the NSE Nifty crashed. Investors were watching to see if key support levels would hold amid continued foreign selling and rising volatility.

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The Sensex fell 662.00 points to 82,914.24, while the Nifty fell 197.35 points to trade at 25,484.75 . 2,367 stocks declined, while only 813 advanced and 172 remained unchanged. This indicates that selling pressure was widespread across almost all segments. Midcap and smallcap stocks also saw further declines, reflecting the market's risk-averse sentiment. Sectoral selling pressure intensified as the session progressed. Realty, media, pharmaceutical, infrastructure, and energy stocks were among the biggest losers. Banking and IT stocks also remained under pressure.

These factors contributed to the stock market decline (Stock Market News).
 

• US President Donald Trump's statement has caused a stir around the world. He said that Iran has contacted Washington for talks on the nuclear issue. But the US may have to take action before the meeting can take place.
• Rising India Vix: Volatility spiked sharply. The India VIX rose more than 8%, reflecting growing investor nervousness and demand for safety amid the sell-off.
• Wall Street futures fell as much as 0.5%, indicating a weak start for US markets. While US markets closed at record highs last week on expectations of interest rate cuts following weak jobs data, Indian stocks lagged.
• Potential US tariff action, uncertainty surrounding global trade, and the lack of any clear positive signals domestically continued to weigh on the market. Crude oil prices remained volatile, further adding to the uncertainty.
• Institutional investment flows also weighed on market sentiment. Foreign institutional investors have been net sellers since the beginning of 2026. While domestic institutional investors have remained net buyers, the imbalance between the two has kept stocks under pressure.

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