MUMBAI, Jan 25, 2026 — India’s equity benchmarks witnessed a bruising week of selling as nine of the top 10 most valued companies collectively lost over ₹2.51 lakh crore in market capitalization. Bajaj Finance and Reliance Industries emerged as the primary casualties of a “perfect storm” of global trade tensions and persistent foreign fund outflows.

Bajaj Finance Valuation Slides Below ₹5.8 Lakh Crore

The market value of NBFC giant Bajaj Finance plummeted by ₹14,093.93 crore, ending the week at a valuation of ₹5,77,353.23 crore. Analysts point to a combination of rising borrowing costs and a cautious outlook on consumer discretionary spending as the main triggers for the stock’s underperformance.

Reliance Industries: The Biggest Loser

Conglomerate Reliance Industries (RIL) suffered the most significant hit, with its valuation plunging by a staggering ₹96,960.17 crore. The company’s market cap now stands at ₹18,75,533.04 crore. The sell-off in RIL was fueled by:

• Geopolitical Friction: US pressure regarding India’s purchase of Russian crude oil.

   

• Retail Sector Slowdown: Lower-than-expected discretionary spending impacting Reliance Retail.

   

• Technical Breakdown: The stock hit its most “oversold” levels in five years, signaling extreme bearish sentiment.

Why the Indian Market is Crashing: Key Factors

The BSE Sensex crashed by 2,032.65 points (2.43%) this week, driven by a series of domestic and international headwinds.

1. The “Greenland Tariff” Shock

Global markets are reeling from the US administration’s threat of 10–25% tariffs on European nations, stemming from the “Greenland acquisition” dispute. This has triggered a global “risk-off” sentiment, forcing investors out of emerging markets like India.

2. Weak Rupee and FII Outflows

The Indian Rupee touched an all-time low of 91.99 against the US Dollar this week. This currency weakness, coupled with Foreign Institutional Investors (FIIs) pulling out over ₹36,000 crore in January alone, has left the domestic market without its usual liquidity cushion.

3. Pre-Budget Jitters

With Union Budget 2026 just days away, investors are adopting a wait-and-watch approach. Rumors of tighter fiscal consolidation and a lack of new consumption-boosting measures have dampened hopes for a pre-budget rally.

The Lone Gainer: Hindustan Unilever

Defying the broader market trend, FMCG major Hindustan Unilever (HUL) was the only firm in the top 10 to see a rise in valuation. Its market cap grew by ₹12,311.86 crore, reaching ₹5,66,733.16 crore, as investors sought refuge in defensive “safe-haven” stocks.

Expert Insight: “Bears are firmly in control as bulls are marginalized by transatlantic trade tensions and weak Q3 earnings,” says Ajit Mishra, Senior VP of Research at Religare Broking. “Investors should focus on high-quality stocks during these declines but remain selective.”

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##FAQ

Frequently Asked Questions (FAQs)

Q1: Why did Bajaj Finance’s market value drop so sharply this week? A: Bajaj Finance’s market cap fell by over ₹14,000 crore primarily due to a broader sell-off in the Indian equity markets. Contributing factors include persistent Foreign Institutional Investor (FII) outflows, rising concerns over MSME loan asset quality, and a cautious outlook on consumer credit growth ahead of the Union Budget 2026.

Q2: What is the current market capitalization of Bajaj Finance? A: As of the week ending January 25, 2026, Bajaj Finance’s market capitalization stands at ₹5,77,353.23 crore, placing it as the 8th most valued company in India.

Q3: Which company lost the most market value last week? A: Reliance Industries (RIL) was the biggest loser among India’s top-10 firms, with its valuation plunging by ₹96,960.17 crore to settle at ₹18,75,533.04 crore.

Q4: Why is the Indian stock market crashing in January 2026? A: The market is facing a “perfect storm” of three main factors:

1. Global Trade Tension: Renewed US tariff threats concerning European nations.

2. Currency Weakness: The Indian Rupee hit a record low of 92.00 against the US Dollar.

3. FII Selling: Foreign investors have pulled out over ₹36,000 crore this month due to expensive domestic valuations and rising US bond yields.

Q5: Are there any gainers in the current market downturn? A: Yes, Hindustan Unilever (HUL) emerged as the sole gainer among the top 10 companies last week. Its market cap rose by ₹12,311.86 crore, as investors shifted capital toward defensive “safe-haven” FMCG stocks.