Sensex down 660 pts, Nifty below 25,300: Key reasons behind the fall

The BSE benchmark fell around 659 points to hit a low of 81,589 against the previous close of 82,258.66. Likewise, the NSE Nifty index dropped 228 points to touch a low of 25,268

Why share markets are falling today: Indian equity benchmark indices, Sensex and Nifty, were trading sharply lower on Friday, February 27, 2026, amid geopolitical tensions and broad-based selling.  

The BSE benchmark index Sensex  fell around 659 points to hit a low of 81,589 against the previous close of 82,258.66. Likewise, the NSE Nifty index dropped 228 points to touch a low of 25,268. 

Around 01:15 PM, the 30-share pack quoted southward by 590 points or 0.72 per cent at 82,658, while the Nifty index traded with a cut of 205.95 points or 0.81 per cent at 25,290 levels. 

On the sectoral front, the Nifty Realty index was the worst hit as it tumbled nearly 2 per cent to 783.1 with all 10 constituents sitting in the red. Nifty Auto, Financial Services, FMCG, Private Banks, and Chemicals also fell over 1 per cent each. On the contrary, Nifty IT, Media, Consumer Durables, and Oil & Gas were trading higher.  

Similarly, in the broader market, the NSE MidCap 100 index was down 0.71 per cent, and the Nifty SmallCap 100 index was down around 1 per cent.     FOLLOW LATEST STOCK MARKET UPDATES LIVE 

Twenty-four of the 30 Sensex constituents were trading in red, including Bharti Airtel, IndiGo, UltraTech, Bajaj Finserv, ICICI Bank, Maruti Suzuki, Kotak Mahindra Bank, Sun Pharma, Hindustan Unilever, Mahindra & Mahindra, Bajaj Finance, and HDFC Bank, down in the range of 1 to 3 per cent.  India VIX, the fear gauge index, was up 4 per cent at 13.58.

Here's why stock markets are falling today:

1. Geopolitical tensions: Geopolitical tensions are still pressuring the market sentiment, with no new domestic trigger in sight. US-Iran negotiations concluded without an agreement; however, discussions may resume, and uncertainty remains over Washington’s next steps.  US Secretary of State Marco Rubio said Iran continues to pose a “serious threat” to the United States. Meanwhile, US President Donald Trump, during his record-long State of the Union address, signalled the possibility of military action, stressing that Tehran would not be allowed to acquire nuclear weapons.  
2. FPIs selling: On Thursday, foreign portfolio investors (FPIs) turned net sellers of Indian equities after a day of buying as volatility persists. The FPI pulled out ₹3,466 crore worth of Indian equities. However, domestic institutional investors (DIIs) stayed net buyers for the third consecutive day, with buying worth ₹5,032 crore.  This week has been marked by heightened volatility, with FPIs turning from buyers to sellers. So far, FPIs have purchased shares worth ₹2,907 crore, while DIIs have remained net buyers, investing ₹12,020 crore in equities. 
3. Weak global markets: On Thursday, US equity indices settled mostly lower, snapping a two-day gaining streak, as Nvidia shares declined despite the AI chipmaker posting quarterly results that beat analyst estimates. Overnight, the S&P 500 index fell 0.54 per cent, the Nasdaq Composite was down 1.18 per cent, and the Dow Jones Industrial Average settled flat.  Asian markets were trading mixed on Friday, following a decline in US stocks. Last checked, Japan's Nikkei 225 index was up 0.16 per cent, Hong Kong's Hang Seng rose over 1 per cent, while South Korea's KOSPI fell around 1 per cent.  
4. Rising crude oil prices: Amid fears that an inconclusive outcome between the two nations could escalate Middle East tensions, disrupt oil supplies and lift prices, sentiment remains cautious. Elevated crude prices are negative for major importers like India, as they can pressure the currency, trigger capital outflows and strain fiscal math.  In the backdrop of global uncertainty and elevated volatility, Aakash Shah, technical research analyst at Choice Equity Broking, advised traders to adopt a disciplined and selective strategy, focusing on fundamentally strong stocks during market corrections.  "Fresh long positions should ideally be considered only after a clear and sustained breakout above the 25,800 level on the Nifty, which would signal stronger market sentiment and confirm the development of a more robust bullish structure," he said.