Sensex Drops 400 Points as Realty Stocks Lead Market Sell-Off

Mumbai | January 9, 2026 – The Indian equity markets witnessed a sharp reversal on Friday as the BSE Sensex plunged over 400 points and the NSE Nifty 50 struggled to hold the 25,750 mark. Despite a brief attempt at a recovery in early trade, persistent concerns over global trade policies and a sharp sell-off in the real estate sector dampened investor sentiment.

The market volatility comes on the heels of renewed fears regarding US tariffs. Recent reports suggesting a potential 500% tariff on Indian goods under the “Russia Sanctions Act”—targeting countries continuing to purchase Russian crude—have kept participants on edge.

Key Market Highlights at Mid-Day

• BSE Sensex: Trading at 83,732.20, down approximately 450 points (0.53%).
• NSE Nifty 50: Hovering near 25,740, losing over 130 points.
• Top Sectoral Laggard: Nifty Realty, down over 2%, marking its fourth consecutive day of losses.
• Market Breadth: Favored the bears, with nearly two-thirds of BSE-listed stocks trading in the red.

Why is the Market Falling?

Several factors are converging to keep the “bears” in control of Dalal Street today:

1. Tariff Turmoil: Investors are anxiously awaiting a US Supreme Court ruling on the legality of the Trump administration’s aggressive tariff measures. With India being a significant exporter to the US, any further trade friction could hit corporate margins across IT, textiles, and pharma.
2. Realty Sector Meltdown: Once the darling of 2025, the Realty index is seeing a significant correction. Major players like Godrej Properties, DLF, and Macrotech Developers (Lodha) saw their shares drop between 2% and 4% today. Analysts attribute this to a mix of profit-booking and concerns that valuations have outpaced current demand fundamentals.
3. FII Outflows: Foreign Institutional Investors (FIIs) remain net sellers, offloading equities worth over ₹3,300 crore in the previous session alone. While Domestic Institutional Investors (DIIs) are providing a cushion, they haven’t been able to fully offset the global selling pressure.
4. Geopolitical Risks: Ongoing tensions in Europe and the Middle East continue to act as a “fear gauge,” pushing the India VIX (volatility index) higher by nearly 7% this week.

Sectoral Performance

While the Realty and Financial Services sectors weighed heavily on the indices, there were a few pockets of resilience. PSU Banks and select Oil & Gas stocks managed to trade in the green, supported by value buying after recent dips. HCLTech and Asian Paints emerged as rare gainers in the Nifty 50 pack.

Looking Ahead

Market experts suggest that the 25,700 level is a crucial support for the Nifty. A breach below this could trigger further technical selling toward 25,500. “The market is in a ‘wait-and-watch’ mode,” says a senior equity strategist. “Until there is clarity on the US trade stance and the upcoming Q3 earnings season, volatility will likely remain the theme of the month.”