Will the stock market crash in 2026?
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A lot of money (i.e., liquidity) has flowed into the Indian stock market from the bank accounts of retail investors of late. Foreign investors may have sold but domestic investors have more than made up for it, keeping the upward pressure on stock prices intact. This was the market situation at the end of 2025.
The new year started with positive sentiment, with the Nifty scaling an all-time high. However the past week delivered a big blow. With the Nifty taking a tumble, investors are beginning to wonder if the much-anticipated correction is finally here.
So, could the stock market crash in 2026? While we won’t make any predictions in this article, we will do our best to answer that question. But first: The first reason is the US tariff issue with regards to India. US President Donald Trump has backed a bipartisan bill that could escalate India's tariff troubles.
This legislation enables tariffs of up to 500% on nations importing Russian oil. If these tariffs are imposed, many listed companies are likely to be hit. In fact, the day reports of these tariffs surfaced, several prominent exporters to the US saw their stock prices fall.
India and the US have been working on a trade deal for many months but some issues have become roadblocks. The import of Russian oil has been a key point of contention. The other reason the market is falling is the concern surrounding earnings growth.
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