Stock market crash: Equity benchmark indices, Nifty50 and BSE Sensex, have plunged by over 2% in the last few trading sessions, with both indices seeing the fifth consecutive day of crash on Friday. Concerns over global trade tensions and political developments in Washington have disrupted investor sentiment, adding to caution.Over the past five trading sessions, the BSE Sensex has shed over 2,100 points, falling from its January 2 close of 85,762.01 to an intraday trough of 83,506.79 on Friday. During the same period, the NSE Nifty 50 has declined to levels below 25,700.

Why is the stock market crashing?

1. FIIs sell-off: Ongoing foreign investor outflows have added to the pressure on equities during the prolonged slide. Foreign institutional investors sold shares worth Rs 3,367.12 crore on Thursday, January 8, marking the fourth straight session of net selling following a brief respite on January 2.The steady exit of overseas funds has intensified the weakness in benchmark indices, deepening losses amid an uncertain global backdrop and reinforcing a risk-averse stance among investors already navigating unfavourable external conditions.2. Trump trade & tariff uncertainty: Equity markets have remained under strain after US President Donald Trump indicated that tariffs on Indian exports could be increased over New Delhi’s continued purchases of Russian crude. A new bill proposing 500% tariffs on countries buying Russian oil has been given a nod by Trump.A proposed bilateral trade agreement between the two countries remains unresolved despite six rounds of discussions held since March. Speaking on the All-In Podcast, US Commerce Secretary Howard Lutnick suggested the talks lost momentum after Prime Minister Narendra Modi did not place a call to Trump. The Trump administration has already imposed tariffs of up to 50% on Indian goods, including a 25% levy linked to India’s imports of Russian oil, among the steepest applied to any trading partner. India has termed these measures “unfair, unjustified and unreasonable”.The uncertainty has intensified ahead of a pending ruling by the US Supreme Court on the legality of Trump’s tariff actions. If the court finds the levies unlawful, Washington could be required to return close to $150 billion to importers, a decision that would have far-reaching implications for global trade.“After the sharp correction yesterday triggered by the possibility of about 500% tariff on India under the provisions of the Russia Sanctioning Act approved by President Trump, the market will be focused on the verdict expected today from the US Supreme Court on the legality of Trump tariffs,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments.“There is a high probability of the verdict going against Trump. But the details are significant: that is, whether it would be a partial striking down of the tariffs or completely declaring the tariffs illegal. The market reaction would depend on the details. If the Supreme Court declares Trump tariffs illegal, there would be a rally in India since India has been the worst affected by the 50% tariffs,” Vijayakumar added.He noted that the recent sharp selloff has dragged down even stocks unlikely to be directly affected by any punitive US measures. According to him, sectors such as financials, consumer discretionary and industrials, which have corrected due to broader market weakness, now offer opportunities for long-term investors to accumulate.3. Muted global signals: Soft cues from overseas markets have reinforced the cautious mood in Indian equities. Stocks across Asia slipped as investors awaited a key US employment report and prepared for a US Supreme Court decision on the validity of President Donald Trump’s broad tariff measures, a ruling that could once again unsettle global markets.4. Rising crude prices weigh on sentiment: Firming oil prices have added another layer of pressure on Indian markets, given the country’s significant reliance on imported crude. Prices moved higher amid lingering geopolitical risks, with investors closely monitoring developments in Venezuela following the capture of President Nicolás Maduro by US forces in a high-profile military operation in Caracas over the weekend.5. Technical signals point to continued weakness: Chart indicators have strengthened the bearish undertone, with key benchmarks breaking below important support levels during the recent decline.“Technically, the market breached the 20-day SMA (Simple Moving Average) support zone, and post-breakdown, selling pressure intensified,” said Shrikant Chouhan, Head Equity Research at Kotak Securities according to an ET report.“On daily charts, it has formed a long bearish candle, indicating further weakness from the current levels,” Chouhan said. He added that “We are of the view that as long as the market is trading below 26,000/84500, weak sentiment is likely to continue on the downside, and the market could slip till 25,750-25,700/84000-83700. On the flip side, if it moves above 26,000/84500, the pullback could continue till 26,075-26,100/84800-85000.”Geojit Investments also flagged caution, citing stretched technical readings. “Short term oscillators being oversold, and being in the vicinity of 30 December’s low, it will not be surprising if a turn high is attempted, as long as 25878 is not penetrated by much margin,” the brokerage said.“Alternatively, slippage past 25776 would have to be taken as a sign that Nifty is coming off a sideways trading range that has been on since November 2025, prompting us to consider possibilities of sharper fall, with 200 day SMA positioned deep at 25039 now.”(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)

New Delhi: Equity mutual fund (MF) inflows stood at Rs 28,054 crore in the month of December as systematic investment plans (SIPs) scaled a fresh record high last month, according to the Association of Mutual Funds in India (AMFI) data released on Friday. 

The monthly mutual fund SIP inflows reached a new record high in December at Rs 31,002 crore, compared to Rs 29,445 crore in November. The SIP investments rose by 5 per cent and 17 per cent on a monthly and yearly basis, respectively.

Gold ETFs also registered strong inflows of Rs 11,647 crore in December, higher than Rs 3,742 crore in November, showed the AMFI data.

Flexi-cap funds witnessed a sharp pickup in inflows, reflecting investor preference for strategies that offer allocation flexibility across market capitalisations amid evolving market conditions.

The mutual fund industry reported an overall net outflows of Rs 66,571 crore in December. Hybrid schemes attracted inflows of Rs 10,756 crore, while ‘other schemes’, including ETFs, saw net inflows of Rs 26,723 crore.

Overall, the flow trend suggests that equity participation remains structurally intact, but investors are becoming more discerning, with greater emphasis on portfolio balance, diversification, and risk management rather than broad-based risk-taking, said Himanshu Srivastava, Principal Manager Research, Morningstar Investment Research India.

Flows remained resilient despite intermittent market volatility, supported by steady SIP contributions and continued confidence in India’s long-term growth outlook, he added.

Amid rising participation from Gen Z, women and households from smaller cities and towns, India’s mutual fund industry, especially the SIPs, are set to witness robust growth in 2026.

Investors have poured over Rs 3 lakh crore into mutual fund schemes through systematic investment plans until November, for the first time in a calendar year. The data from AMFI showed earlier that SIP inflows in the calendar year touched Rs 3.04 trillion (lakh crore) for the first time, up from Rs 2.69 trillion in 2024.

SIPs have emerged as one of the strongest and most reliable engines of growth for the Indian mutual fund industry. Sustained net inflows, strong market performance, and deepening retail participation, aided by digitisation and financialisation of savings, have contributed to the steady surge in AUM, according to ICRA Analytics. India’s mutual fund industry’s assets under management (AUM) may surpass Rs 300 trillion by 2035, it added.

New Delhi: Chartered accountant Nitin Kaushik recently posted on X the real-life story of a person who purchased a 3BHK apartment in Surat for Rs 55 lakhs without an inheritance or fancy career but with consistent discipline.

Kaushik said that he had recently met a person who despite not belonging to any privileged background, recently bought a 3BHK apartment in Surat for Rs 55 lakhs. Kaushik said this man’s simple story will “change your view on wealth”.

How a Simple Story Change your View on “Wealth”

A few weeks ago, I met someone-not from a privileged background-who recently bought a 3BHK apartment in Surat worth _55 lakhs.

No inheritance, no fancy job, no startup exit-just steady discipline.___#stockmarket_ pic.twitter.com/WBBgtGGyx3
— CA Nitin Kaushik (FCA) | LLB (@Finance_Bareek) January 7, 2026

When Kaushik asked the person how he managed the purchase of the home the person said that he had saved Rs 45 lakhs over 12 years and took a home loan of Rs 10 lakh. “No panic about EMIs or inflation. Just quiet confidence and planning,” Kaushik said.

Kaushik said, “This was not overnight success.” The man saved consistently through recurring deposits, gold savings schemes and local real estate investments in his village near Surat. Kaushik said that consistency added with patience over 12 years is the key to the man’s success.

The person already owned a two-storey home and a small commercial shop in the village, which were both rented out. The rental inflows were roughly Rs 22,000 per month. “Every rupee saved or reinvested, building more wealth quietly,” wrote Kaushik.

According to Kaushik, the person accumulated over Rs 40 lakh through consistent saving and reinvestment, without using stocks or mutual funds. The man’s accumulation of wealth showed that “wealth is not about quick compounding but long term discipline. Many chase complex, risky strategies, but steady, patient investing builds real wealth brick by brick,” he said.

According to Kaushik, wealth develops based on how long you stick to your discipline and not how much you make. “Wealth grows by how long you hold your discipline, not just by how much you earn. Even small streams, flowing steadily, become rivers. Formula for success is Consistency × Patience × Simplicity. Anyone can start this today no matter your income level,” Kaushik said.