Indian equities weakened further in late trade, with selling pressure accelerating across the board. The Sensex dropped 847.02 points to 82,887.23, while the Nifty 50 slid to 25,597.30, marking the day’s low and signaling sustained bearish momentum.
Market Breadth Turns Sharply Negative
Selling dominated the broader market:
Nifty 50: 6 gainers vs 44 losers (−0.9%)
Nifty 500: 113 gainers vs 387 losers (−0.8%)
Nifty Bank: 2 gainers vs 12 losers (−0.8%)
The sharp imbalance highlights broad-based risk reduction, not just index-heavy selling.
Institutional Flow Supports Market
Despite the decline, FII cash buying remained positive at ₹1,154.34 crore, indicating selective accumulation even as headline indices fell.
5 Key Reasons Behind the Fall
1. Profit Booking After Recent Rally
Markets had rallied about 1.4% over the last three sessions, prompting investors to lock in gains. Buying turned stock-specific while overall sentiment remained cautious.
2. Rising Crude Oil Prices
Crude held above $70 per barrel amid US-Iran supply concerns, raising inflation and cost pressures, weighing on equities.
3. Critical Technical Levels for Nifty
Analysts say 25,900–26,000 remains a decisive breakout zone. On the downside, 25,700–25,660 is a crucial support band—failure could trigger deeper selling.
4. India VIX Spikes
The volatility gauge jumped 3.5% to 12.66, signaling rising near-term uncertainty. F&O expiry further amplified intraday swings.
5. Broad-Based Selling Pressure
Midcaps and smallcaps also weakened, confirming widespread risk reduction across the market.
Stocks Dragging the Market
Major losers (around -2%):
Trent, InterGlobe Aviation, Adani Enterprises
Under pressure:
JSW Steel, Power Grid, Mahindra & Mahindra, Bharat Electronics, Asian Paints, Adani Ports, Jio Financial
IT stocks showed mild resilience, supported by gains in US tech markets.
Oil Sector Divergence
Higher crude boosted upstream players:
ONGC (+3%)
Oil India (+4%)
But pressured oil marketing companies:
BPCL, HPCL, IOCL (around -3%) due to margin concerns.
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