Mon Jan 27 12:02:13 UTC 2025: ## Indian Stock Market Plunges on Concerns Over Budget, Earnings, and Global Uncertainty

**Mumbai, India –** The Indian stock market experienced a significant downturn on Monday, January 27th, with the benchmark Sensex plummeting nearly 900 points intraday and the Nifty 50 falling below 22,800. The Sensex closed at 75,366.17, a loss of 824 points (1.08%), while the Nifty 50 ended at 22,829.15, down 263 points (1.14%). This marks the second consecutive day of losses, with mid and small-cap indices suffering even steeper declines of 2.68% and 3.51% respectively. The overall market capitalization of BSE-listed firms dropped by approximately ₹10 lakh crore (approximately $120 billion USD) in a single day, bringing total losses over the past two sessions to nearly ₹15 lakh crore (approximately $180 billion USD).

Several factors contributed to this sharp selloff, according to market experts. Concerns surrounding the upcoming Budget 2025, particularly the possibility of populist measures that could strain the fiscal deficit and weaken the rupee, are weighing heavily on investor sentiment. Weak Q3 earnings from Indian corporates further dampened investor confidence.

The persistent selling by foreign portfolio investors (FPIs), who have offloaded nearly ₹2.5 lakh crore (approximately $300 billion USD) since October, also played a significant role. This selling is attributed to factors such as currency depreciation, rising crude oil prices, and attractive risk-free returns on US Treasury bonds.

Adding to the global uncertainty, the impending US Federal Open Market Committee (FOMC) meeting and President Trump’s ongoing tariff threats are creating further market jitters. The potential for new tariffs on various countries, including a previously threatened 25% tariff on Canada and Mexico, is fueling anxieties.

Experts advise investors to exercise caution and seek professional advice before making any investment decisions.

Read More