Sensex drops 800 pts in 2 days, Nifty below 26,150: Why are markets falling

Shares of RIL, Trent and HDFC Bank led the decline in the Nifty50 index on Tuesday amid profit booking in heavyweight stocks

India’s benchmark equity indices slipped for a second straight session on Tuesday as heavyweight stocks such as Reliance Industries (RIL) and HDFC Bank declined, while fresh tariff uncertainties added to investor woes.

 

On Tuesday, the Nifty index fell as much as 0.42 per cent, or 109 points, to 26,141, while the 30-stock Sensex slipped 0.56 per cent, or 481.3 points, to 84,958.2. From the day's high, the Nifty and Sensex fell by 0.5 per cent each.   In the last two sessions, the Sensex has fallen by 800 points, while Nifty is down 188 points.

 

During the session, the market breadth remained weak on the BSE. Out of 4,071 stocks traded on the BSE, only 1,581 advanced versus 2,270 declines, underscoring broad-based selling beneath the index level. Around 220 stocks remained flat.

 

 

On the sectoral front, however, most indices were in the green. The Nifty Oil and Gas index was the top loser, down nearly 2 per cent, followed by Nifty Chemicals and Nifty Media. On the flipside, Nifty PSU Bank and Healthcare indices were the top gainers on Tuesday.

 

It seems the market’s verdict is that the economic consequences of this major geopolitical event will not be negative, VK Vijayakumar, chief investment strategist, Geojit Investments, said.  "However, it is too early to take a call on this since further surprises on the geopolitical front are likely. We are in a highly uncertain phase."   CATCH STOCK MARKET LIVE UPDATES TODAY

Why are Indian stock markets falling?

Profit booking in heavyweight stocks

Shares of RIL, Trent and HDFC Bank led the decline on Tuesday amid profit booking in heavyweight stocks. RIL dragged the index the most in the Nifty index, followed by HDFC Bank and Trent. 

 

RIL shares saw their steepest fall in over eight months, falling over 5 per cent amid reports that CLSA dropped the stock from its India model portfolio. The fall came even after it denied reports that claimed three tankers carrying Russian crude oil were headed to its Jamnagar refinery

 

Meanwhile, Shares of Tata Group’s retail arm, Trent dropped over 8 per cent following its third-quarter results for FY26 and its performance for the nine-month period ending December 31, 2025. 

Investor caution amid geopolitical tensions

Over the weekend, US forces carried out a large military operation in Venezuela, capturing President Nicolas Maduro and his wife and taking them to the US to face various charges, including narco-terrorism and drug trafficking. Following this analysts are cautious even after global markets looked past the geopolitical development. 

 

Markets are in a highly uncertain phase, said Vijayakumar, adding that investors can also think of increasing the cash position in their portfolios even while remaining invested. "Heightened uncertainty triggered by unprecedented geopolitical events demands a cautious approach to investment supported by higher cash position to exploit sudden movements in the market."

More tariff threats 

Earlier this week. US President Donald Trump warned that he could raise further tariffs on Indian exports if New Delhi does not stop buying Russian oil, adding fresh uncertainty. 

 

“They (India) wanted to make me happy, basically. (Prime Minister Narendra) Modi is a very good man; he is a good guy. He knew I was not happy, and it was important to make me happy. They do trade, and we can raise tariffs on them very quickly. It would be very bad for them,” Trump told reporters

Technical outlook

On the downside, strong support for Nifty is seen at 26,100–26,050, aligned with recent swing lows and the 20-day EMA, Ponmudi R, chief executive officer of Enrich Money, said. 

 

As long as this zone is defended, dip-buying interest is likely to remain intact. A decisive break below 26,000, however, could increase corrective pressure toward 25,900, he said. "Momentum indicators remain neutral following recent profit booking, pointing to a range-bound start unless fresh triggers emerge."