₹4.7 trn eroded! Sensex sinks 961 pts; Nifty at 25,178: Reasons behind fall

Indian equity benchmark indices, Sensex and Nifty 50, ended sharply lower today with a loss of more than 1 per cent each, tracking a weak trend in global markets and broad-based selling.

The 30-share BSE Sensex opened lower at 82,220.48 and traded under pressure throughout the day before the fag-end selling forced to index to close near the day's low with a cut of 961.42 points or 1.17 per cent at 81,287.19. During the day, it dropped 1,089.46 points or 1.32 per cent to 81,159.15.  Likewise, the NSE Nifty index dropped 317.90 points or 1.25 per cent to end the session at 25,178.65. It made an intraday low of 25,141.30.

 

On the sectoral front, the Nifty Realty index was the worst hit as it fell more than 2 per cent. Other indices like Nifty Auto, Financial Services and Metal fell over 1 per cent each. The Nifty Bank index, which tracks the movement of 14 listed banks, cracked 658.70 points or 1.08 per cent to finish at 60,529. Only 2 constituents advanced while the remaining 12 closed in the red.

On the contrary, Nifty IT, Media, Consumer Durables managed to defy the market trend and settled in the green.

The broader markets mirrored the weakness in benchmark as the NSE MidCap 100 index and Nifty Smallcap 100 fell more than 1 per cent each in the trade.

India VIX, the fear gauge index, spiked nearly 5 per cent to 13.70.

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  Top gainers, losers

From the Nifty 50 pack, only six stocks advanced. The gainer included Trent, Infosys, HCL Tech, Eternal, Apollo Hospitals and NTPC. On the other hand, Adani Enterprises, Maruti, Airtel, Grasim, Sun Pharma, HDFC Life, M&M, Bajaj Finserv, Shriram Finance, UltraTech Cement, Dr Reddy's, Eicher Motors, SBI Life and IndiGo slipped more than 2 per cent each. Kotak Mahindra Bank, Adani Ports, Nestle India, HUL, ICICI Bank, Max Healthcare and Hindalco were among other major losers.   From the Sensex pack, HCL Tech, Trent, Infosys, Eternal and NTPC were the only gainers while Sun Pharma, Airtel, M&M, Bajaj Finserv, IndiGo, Maruti and UltraTech Cement were the top laggards.

₹4.7 trillion wiped out 

Today's selling erased ₹4.7 trillion from the Street as the market capitalisation of all the BSE listed companies slipped to ₹463.51 trillion as against the previous day's total market capitalisation of ₹468.26 trillion.

 

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.