Stock markets slump wipes out Rs 9 lakh crore worth of investors' wealth

New Delhi: The Indian equities benchmark indices slumped on Tuesday leading to erosion of nearly Rs 9 lakh crore in investors’ wealth as renewed global trade uncertainties and uneven earnings signals weighed heavily on market sentiments.

The 30-stock Sensex of the BSE slumped by 1065.71 points or 1.28% to 82,180.47 points, the lowest level in three months. The wider Nifty 50 of the NSE dipped 1.38% or 353 points to 25,232.50 points.

In the past two sessions the Sensex has slumped by 1,390 points or 1.7%. The market capitalisation of the BSE-listed firms dropped to Rs 456 lakh crore on Tuesday from Rs 468 lakh crore recorded on Friday, leading to nearly Rs 12 lakh crore decline. On Tuesday itself nearly Rs 9 lakh crore worth of investors’ wealth was wiped out.

In the 12 trading sessions of 2026 calendar year so far, the key indices Sensex and Nifty 50 have registered losses in eight sessions. Sustained selling by the foreign investors has been the key drag on the markets. Foreign institutional investors (FIIs) have pulled out around $2.7 billion from the Indian markets this month. Total outflows in the financial year 2025-26 so far stand at $6.6 billion.

“Market sentiment remained subdued due to mixed corporate earnings and renewed concerns surrounding geopolitical tensions and global trade developments,” said Ajit Mishra, senior VP-Research at Religare Broking.

“Persistent foreign institutional selling, along with a weaker currency environment, further weighed on investor confidence and kept risk appetite restrained throughout the session,” Mishra added.

The Indian rupee depreciated to close at a record low of Rs 90.98 against the US dollar. Analysts expect further depreciation in the value of the Indian currency.

“The currency remains range-bound with participants awaiting fresh triggers from the Union Budget due on February 1, while the US Fed’s policy decision later this month is expected to add volatility. The rupee is likely to trade between 90.45 and 91.45 in the near term,” said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

Trade tensions between the US and European countries over US President Donald Trump’s aggressive stance on acquisition of Greenland have led to selloff in the equities markets globally.

“The volatility in the market is likely to continue in the near-term till some clarity emerges regarding the US-Europe standoff on Greenland tariffs,” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

Meanwhile, Gold and silver surged to fresh record highs, with spot gold crossing $4,725 per ounce and silver breaching $95 per ounce. The MCX gold rose above Rs 150,000 per 10 grams while MCX silver surged past Rs 326,000 per kg.

“Fresh tariff announcements by Trump, including a 10% levy on EU nations, have revived concerns over global trade and cast doubts on the progress of a US–India trade deal,” said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

Gold is expected to remain volatile with a positive bias, trading in a broad range of Rs 1,42,000–Rs 1,55,000 in the coming days, Trivedi said.