Synopsis: Indian benchmark indices fell sharply on Tuesday as heavy selling in banking stocks and Reliance Industries weighed on sentiment. The Sensex lost nearly 504 points while the Nifty slid below 26,100, marking the third straight session of declines amid foreign outflows and weak global cues.
Sensex Crashes Nearly 504 Points As Banking Stocks Drag Markets
The markets witnessed a sharp sell-off on Tuesday as heavy selling in major banks and Reliance Industries pushed both indices lower. Persistent foreign investor outflows and soft global cues amplified the pressure, resulting in the Sensex and Nifty closing significantly in the red.
Where the Markets Closed
- Sensex: Closed down 503.63 points at 85,138.27 (intraday low nearly 589 points).
- Nifty: Fell 143.55 points to end at 26,032.20, slipping below the 26,100 mark.
The decline extended the market’s losing streak to three sessions, following a fresh high in the previous session that prompted profit-booking.
Top Movers: Who Dragged the Indices Down
Major laggards that weighed on the Sensex and Nifty included:
- Axis Bank
- HDFC Bank
- ICICI Bank
- Reliance Industries
- Bharat Electronics
- Larsen & Toubro
On the upside, select names limited deeper losses:
- Asian Paints
- Maruti Suzuki
- Bharti Airtel
- Bajaj Finance
Technical View: Market Weakness Could Deepen
Shrikant Chouhan, Head of Equity Research at Kotak Securities, said the market is witnessing profit-booking at elevated levels. While selective buying was visible in auto and paint stocks, the broader technical setup appears weak.
Key technical observations and levels to watch:
- If Nifty slips below 26,000 and Sensex falls under 85,000, a deeper sell-off could follow.
- If those levels hold, a rebound toward Nifty 26,100–26,175 and Sensex 85,500–85,800 is possible.
- On the downside, breach of supports could push indices to Nifty 25,850–25,800 and Sensex 84,500–84,300.
Flows & Broader Market Context
Foreign Institutional Investors (FIIs) continued their selling trend, offloading equities worth ₹1,171.31 crore on Monday. Domestic Institutional Investors (DIIs) stepped in with purchases of about ₹2,558.93 crore, providing some cushion amid the weakness.
Global Cues & Commodities
- Asian markets were mixed: China closed lower while Japan, South Korea and Hong Kong posted gains.
- European markets traded positive, but the US ended lower overnight—adding to caution.
- Brent crude eased slightly by 0.33% to USD 62.96 per barrel, offering mild relief on inflation concerns.
What Investors Should Keep in Mind
- Profit-booking at record highs is a normal corrective process—monitor key technical support levels closely.
- Watch FIIs flows and global risk sentiment for directional cues.
- Selective buying opportunities may exist in defensive sectors such as autos, paints and selective consumer names.
📌 Key Takeaway
Heavy selling in banking heavyweights and Reliance, combined with persistent foreign outflows and mixed global cues, triggered a sharp market correction. Traders should watch Nifty 26,000 and Sensex 85,000 as critical supports—breach could deepen losses, while holds may invite short-covering rallies.
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