Indian Shares Extend Losses for Third Consecutive Day, Sensex Drops 1.2%

Indian equities declined for the third straight session on January 21, 2026, with the benchmark S&P BSE Sensex falling 1.2% to 74,321 amid renewed investor concerns over rising U.S. Treasury yields and global risk aversion. The broader Nifty 50 index dropped 1.1%, pressured by losses in banking, technology, and consumer goods sectors. The sell-off followed a sharp rise in 10-year U.S. Treasury yields to 4.85%, triggering capital outflows from emerging markets. Foreign institutional investors (FIIs) sold a net ₹12,800 crore ($1.5 billion) in Indian stocks during the week, according to data from the National Securities Depository Limited (NSDL). Market analysts cited growing uncertainty around India’s fiscal deficit trajectory and upcoming state assembly elections as additional headwinds. Despite recent gains in corporate earnings, sentiment remains fragile ahead of key economic data due later in the month.