Why Is the Stock Market Down Today?
Indian stock markets fell sharply on Thursday, with heavy selling dragging benchmark indices lower amid rising global trade concerns and persistent foreign fund outflows. The BSE Sensex slipped over 600 points to an intraday low of 84,230, while the Nifty 50 declined more than 200 points, slipping below the crucial 26,000 level.
Mumbai, January 8: Indian stock markets fell sharply on Thursday, with heavy selling dragging benchmark indices lower amid rising global trade concerns and persistent foreign fund outflows. The BSE Sensex slipped over 600 points to an intraday low of 84,230, while the Nifty 50 declined more than 200 points, slipping below the crucial 26,000 level.
Russia Sanctions Act Sparks Fresh Worries
A key reason why the market is down today is renewed uncertainty around global trade after US President Donald Trump approved the Russia Sanctions Act. The proposed law allows for steep tariffs, reportedly up to 500%, on countries importing crude oil from Russia. HDFC Bank Share Price Today, January 8: Stock Trades Flat in Early Session, Check Latest Price on NSE.
Since India is a major buyer of Russian crude, investors fear higher energy costs, trade friction, and pressure on inflation, triggering risk-off sentiment across equities. National Aluminium Share Price Today, January 8.
Continued FII Selling Weighs on Sentiment
Another major drag is persistent selling by Foreign Institutional Investors (FIIs). FIIs have remained net sellers since July 2025, leading to sustained pressure on large-cap stocks. Although Domestic Institutional Investors (DIIs) offered limited support, it was insufficient to offset the scale of foreign outflows, resulting in broad-based weakness.
Banking and Global Cues Add to Pressure
Weak global cues, falling commodity prices, and geopolitical tensions further dampened sentiment. The Bank Nifty fell over 0.50%, touching an intraday low of 59,564, as banking stocks faced profit booking amid concerns over global volatility and capital flows.
Market Outlook: Volatility Likely to Persist
Market experts believe near-term volatility may continue, with investors closely tracking developments around US trade policy, India’s official response to the sanctions risk, and FII flow trends. Until clarity emerges, benchmark indices may remain under pressure despite strong domestic fundamentals.
In summary, the stock market is down today due to global trade uncertainty, Russia-related sanctions risk, and sustained foreign investor selling, factors that are keeping Dalal Street cautious in the near term.
(The above story first appeared on LatestLY on Jan 08, 2026 01:11 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).