Markets fall 4% in January over foreign fund outflows

New Delhi: India's benchmark indices Sensex and Nifty have fallen over 4% this month, weighed down by persistent foreign fund outflows, a weaker rupee, muted corporate earnings, geopolitical risks and fresh tariff concerns. The 30-share BSE Sensex tumbled 3,682.9 points, or 4.32%, and the 50-share NSE Nifty tanked 1,080.95 points, or 4.1%, so far this month. "Historically, similar pre-budget trends in January have witnessed a sharp fall followed by a recovery post-Republic Day leading up to the Budget; market participants will be hoping for a similar reversal this time," Santosh Meena, Head of Research at Swastika Investmart Ltd, said. In January 2025 also, the 30-share BSE benchmark had declined 638.44 points, or 0.81% . In January 2024, 2023, 2022, 2021, and 2020 also, the BSE benchmark had declined.127584707 "So far in January 2026, both the Sensex and the Nifty have declined by over 4%, with geopolitical uncertainties and fresh tariff concerns exerting a cascading impact on domestic equities. The global risk-off environment has prompted aggressive selling by foreign portfolio investors during the month. This has added pressure on the rupee, which has slipped to record lows," Ponmudi R, CEO - Enrich Money, an online trading and wealth tech firm, said. Elevated crude oil prices in international markets, alongside rising global bond yields, have further compounded risk aversion, keeping investors cautious and reinforcing a defensive stance as markets navigate an increasingly uncertain global macro and geopolitical landscape, he said. The rupee hit a historic low of 92 against the US dollar on January 23. The local currency has slumped over 2% so far this month. According to a report by Axis Securities, with global uncertainty, domestic growth resilience, and fiscal discipline all in play, the Union Budget 2026-27 is expected to strike a balance between growth support and macro stability. Last week, the BSE benchmark tanked 2,032.65 points, or 2.43%, and the Nifty declined 645.7 points, or 2.51%.