The Brutal Market Cap Plunge: 9 Indian Titans Lose ₹2.5L Crore
MUMBAI – The Indian equity market witnessed a bloodbath week of value erosion as nine of the country’s top ten most valued companies saw a staggering ₹2.51 lakh crore wiped off their combined market capitalization. This massive Market Cap Plunge has rattled retail investors and institutional giants alike, marking one of the most volatile starts to a fiscal quarter in recent history.
Here is a breakdown of why the Market Cap Plunge has hit India’s top titans so hard this week
Quick Highlights
Market Cap plunges: The Great Erosion Across Top 9 Titans
According to the latest exchange data as of January 25, 2026, the collective valuation of India’s corporate titans—including Reliance Industries, TCS, and ICICI Bank—collapsed under the weight of global and domestic headwinds. As the Market Cap plunges across these heavyweights, the erosion highlights a significant cooling in investor sentiment. Out of the top 10 companies, only Hindustan Unilever (HUL) managed to buck the trend. (for market data) http://NSE India: https://www.nseindia.com (for market data)
- Reliance Industries (RIL): The energy-to-telecom giant was a primary drag, with its market cap falling significantly following Q3 results. While RIL reported a 10% jump in revenue to ₹2.69 lakh crore. Investors were spooked by the 8.4% drop in Oil & Gas segment revenue and a slowdown in the retail business.
- Adani Group: Following a catastrophic Friday session, the conglomerate’s market cap shed ₹1.1 lakh crore in a single day.
Market Cap Plunge Triggers: The “Greenland Ultimatum”
The primary catalyst for this week’s broader market sell-off stems from a “Greenland Tariff Shock” originating in Washington. President Trump’s administration has issued an ultimatum to several European and NATO allies, threatening punitive tariffs of 10% to 25% starting February 1, 2026, linked to the U.S. demand to acquire Greenland.
While the dispute is transatlantic, the geopolitical uncertainty has triggered a massive “risk-off” sentiment globally. Foreign Institutional Investors (FIIs) have reportedly offloaded Indian equities worth over ₹36,500 crore this January alone.
Market plunged when Adani Group got SEC Action
The Adani Group faces a unique crisis that has reintroduced a “risk premium” to its stocks. The U.S. Securities and Exchange Commission (SEC) has approached a New York federal court seeking permission to serve summons to Gautam Adani and Sagar Adani via email. This move comes after India’s Ministry of Law reportedly declined official service requests twice due to “procedural deficiencies.”
The investigation centers on an alleged $265 million bribery scheme and fraud related to solar power contracts. Compounding the legal pressure, Adani Green Energy reported a net loss of ₹41 crore for the December quarter, a staggering reversal from the ₹492 crore profit reported a year earlier. This “double whammy” has led to a massive loss of investor confidence.
Domestic Pressure: The Pre-Budget Jitters
This recent Market Cap Plunge serves as a stark warning for Indian investors as we head into the 2026 Budget.” Investors are exhibiting extreme caution ahead of the Union Budget 2026, scheduled for February 1. There is growing concern that the government may prioritize fiscal consolidation over consumption-boosting measures. Analysts at Geojit Financial Services note that since earnings growth appears stagnant, FIIs are using every minor rally to add to their “net short” positions.
The banking sector, a major pillar of the Nifty 50, also saw significant selling. ICICI Bank and Axis Bank fell by over 2-3% as the market digested a 2.6% decline in ICICI’s quarterly consolidated profit, largely due to RBI-mandated provisions for agricultural loans.
Market Outlook: A Valuation Reset?
Despite this jolt, According to finance analyst Prakash Gaba, “we are witnessing a necessary “valuation reset.” The Indian IPO pipeline for 2026 remains robust, with over 13 companies receiving SEBI approval this week alone.
Also Read: https://newshashtag.com/adani-group-firms-shed-12-5-billion-market-cap/
Prabha Gupta is a veteran journalist and civic thinker dedicated to the constitutional ideals of dignity and institutional ethics. With over thirty years of experience in public communication, her work serves as a bridge between India’s civil society and its democratic institutions. She is a prominent voice on the evolution of Indian citizenship, advocating for a national discourse rooted in integrity and the empowerment of the common citizen
