The Indian equity market witnessed sharp losses onJanuary 12, 2026, with theSensex falling 638 points to 82,937and theNifty dropping 189 points to 25,494by late morning. Selling was broad-based, with pressure visible across banking, IT and heavyweight stocks.

 Global uncertainty & geopolitical risks

Market experts say global developments have shaken investor confidence. Uncertainty around theUS–India trade deal, rising tensions inIran, developments inVenezuela, and controversial statements by former US PresidentDonald Trumphave all added to market nervousness. These risks have pushed theIndia VIX (volatility index)higher, signalling more turbulence ahead.

 Weak technical signals

From a technical perspective, theNifty 50has broken below key support levels and is trading near its100-day moving average. Momentum indicators likeRSI and MACDsuggest bearish control, with further downside possible if the market fails to stabilise.Bank Niftyis also under pressure, with banking stocks unable to lead a recovery.

 Investors turn cautious ahead of earnings

With theQ3 earnings seasonset to begin next week, investors are reducing risk. Ongoingforeign institutional investor (FII) selling, concerns over global trade, and uncertainty around corporate profits have led to defensive positioning across portfolios.

 What’s next?

Experts warn thatvolatility is likely to remain highin the near term. Until there is clarity on geopolitics, trade policy and earnings outlook, any market recovery may remain limited. Investors are advised to stay cautious and focus on quality stocks rather than chasing short-term rebounds.