Indian equity markets witnessed a sharp sell-off, with the Sensex plunging 1,236 points (-1.48%) to close at 82,498, while the Nifty 50 slipped 365 points (-1.41%) to end the session at 25,454.
Midcap and smallcap stocks also declined, with all sectoral indices ending the session in the red.
Realty, PSU banks, FMCG, auto, and media stocks recorded the steepest losses.
Rally comes to a halt
The decline wiped out gains from the previous three trading sessions.
Both the Sensex and Nifty opened higher but failed to sustain momentum as selling pressure intensified through the day.
What triggered the fall ?
Investors engaged in profit booking after a three-day rally in the markets.
With key domestic events such as the Budget, India–US developments, and the RBI policy already behind, markets lacked fresh local triggers.
The end of the Q3 earnings season has also shifted focus toward stock-specific action rather than broad-based buying.
Adding to caution, minutes from the US Federal Reserve’s January meeting revealed divisions among policymakers on the future interest rate path.
Sector & stock highlights
Most sectoral indices ended lower, with media, consumer durables, realty, and capital goods declining by around 1% each.
Banking stocks led the downside, as the Nifty Bank index slipped close to 1%.
State-run bank stocks in India showed relative resilience, outperforming technology stocks amid continued foreign investor interest.
IT stocks saw a rebound of up to 2%, tracking a rally in US technology shares overnight. Infosys, Tata Consultancy Services, and Coforge led the recovery.
Hindustan Unilever approved an investment of around ₹2,000 crore over the next two years to expand manufacturing capacity. The planned investment will focus on premium and fast-growing categories across beauty, wellbeing, and home care.
Bharat Forge entered into a collaboration agreement with VVDN Technologies across automotive, defence, and data centre segments.Despite the announcement, the stock closed 0.52% lower at ₹1,762.60.
Commodities update
MCX gold prices ended higher at ₹1,56,350, rising ₹589 (0.38%) from the previous close.
MCX silver prices also moved up, settling at ₹2,45,300, up ₹1,032 (0.42%) compared to the previous close.
Foreign flows remain under pressure
Foreign portfolio investor ownership in NSE-listed companies has fallen to a 15.5-year low. The decline follows record net outflows of $18.9 billion, highlighting sustained pressure from global risk-off sentiment.
Market takeaway
Today’s session reflects a classic risk-off move driven by profit booking, global rate uncertainty, and the absence of fresh domestic triggers. Near-term market direction is likely to remain sensitive to global cues, particularly US interest rate expectations and geopolitical developments.
Other major headlines
- Reliance Industries plans to invest ₹10 trillion in artificial intelligence initiatives over the next seven years, according to Mukesh Ambani.
- Tata Group and OpenAI announced a partnership to develop a 100 MW data centre, signalling a major push in AI infrastructure.
- Waaree Energies announced plans to set up a ₹8,000 crore lithium-ion battery gigafactory in Andhra Pradesh, strengthening India’s clean energy ecosystem.
- Cochin Shipyard signed a contract worth over ₹2,000 crore with a France-based company, highlighting its growing presence in international shipbuilding projects.
Source: Livemint, Business Standard, Bloomberg, Perplexity Finance
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