On January 27, 2025, the Indian stock market faced a steep decline, with the BSE Sensex dropping over 800 points to close around 75,348, and the NSE Nifty falling to approximately 22,826. This sharp fall led to an erosion of nearly ₹10 lakh crore in investor wealth. Let’s dive into the reasons behind this market crash and the biggest losers of the day.
Why Did the Market Fall?
1. Heavy Selling by FIIs
- Foreign Institutional Investors (FIIs) sold stocks worth ₹64,156 crore in January 2025, with a net outflow of ₹2,758 crore on January 26 alone. This consistent selling weakened market sentiment and triggered widespread selling across sectors.
2. Disappointing Q3 Corporate Results
- Several major companies reported weak Q3 FY25 earnings, raising concerns over the health of the corporate sector. Lower profits and rising expenses impacted investor confidence.
3. Pre-Budget Concerns
- Uncertainty around the Union Budget 2025, scheduled for February 1, led to nervousness among investors. Worries over potential fiscal slippage and limited growth-oriented measures added to the pressure.
4. Depreciation of the Rupee
- The Indian rupee depreciated to an all-time low of ₹86.44/USD, making Indian assets less attractive to foreign investors and increasing concerns about capital outflows.
5. Weak Global Sentiment
- Global equity markets were also under pressure due to US Federal Reserve tightening concerns and lower-than-expected growth data, amplifying the bearish trend in Indian markets.
Top 10 Biggest Losers on January 27, 2025
The following table highlights the top 10 stocks that saw the sharpest declines:
| Company | Current Price (₹) | Price Change (%) | Reason for Fall |
|---|---|---|---|
| CreditAccess Grameen | 450 | -18% | Weak Q3 earnings; net loss of ₹99.5 crore due to rising NPAs and provisioning. |
| Netweb Technologies India | 370 | -15% | Disappointing earnings and concerns over future growth prospects. |
| Newgen Software Technologies | 500 | -14% | Sluggish revenue growth amidst market volatility. |
| Alldigi Tech | 220 | -12% | Poor operational performance in Q3 earnings report. |
| Dhani Services | 150 | -11% | Regulatory scrutiny and rising operational challenges. |
| Tejas Networks | 300 | -10% | Delayed projects impacting future revenue. |
| Solara Active Pharma Sciences | 420 | -9% | Supply chain disruptions and increased operational costs. |
| K P Energy | 180 | -8% | Delays in project execution and regulatory roadblocks. |
| Zomato Limited | 80 | -7.66% | Rising competition in the food delivery space affecting margins. |
| Dr. Reddy’s Laboratories | 4,200 | -8.30% | Setbacks in drug approvals and competition from generics. |
Conclusion
The Indian stock market crash on January 27, 2025, was driven by a combination of foreign investor selling, weak corporate earnings, and pre-budget uncertainties. The depreciation of the rupee and weak global market sentiment further exacerbated the situation. While such corrections create a challenging environment for investors, they also open opportunities for long-term investors to reassess their portfolios and invest in fundamentally strong companies.
