All Sectors Turn Red as Sensex Sheds 504 Points and Nifty Breaks Below 26,000
Nifty Slips Below 26,000 and Sensex Sheds 504 Points as Markets Extend Their Losing Streak
| Index | Price | Change | % Chg |
| Nifty 50 | 26,032.20 | 143.55 | -0.55% |
| Nifty Bank | 59,273.80 | 407.55 | -0.68% |
| Nifty Financial | 27,565.25 | 249.25 | -0.90% |
| BSE SENSEX | 85,138.27 | 503.63 | -0.59% |
Indian equities weakened for the third consecutive session on Tuesday as benchmark indices slipped further from record highs. The Nifty 50 ended below the crucial 26,000 mark, while the Sensex declined 504 points, dragged by broad-based selling, persistent foreign investor outflows, and renewed pressure on the Indian rupee, which hit yet another all-time low.
The cautious mood in the market was evident from the opening tick. The Nifty 50 opened in the red, remained under selling pressure throughout the session, and closed down 0.55% at 26,032.20. The BSE Sensex also mirrored the weakness, closing 503.63 points lower at 85,138.27, a 0.59% decline.
Even as headline indices fell, the broader markets offered no support. The BSE Midcap index ended marginally lower, while the Smallcap index lost 0.6%, underscoring the risk-off sentiment among investors.
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The Indian rupee slipped to a fresh record low, briefly breaching the 90-per-dollar mark in intraday trade before settling marginally higher. The sharp depreciation, driven by sustained importer demand, speculative short-covering and a firm US dollar globally, added significant pressure on market sentiment. Investors grew increasingly cautious as the weakening currency threatened to inflate import costs, widen the trade deficit and trigger further foreign outflows.
Persistent importer demand
Aggressive speculator short-covering
A stronger US dollar
Concerns over India’s widening trade deficit
Currency volatility weighed heavily on investor sentiment, particularly for sectors dependent on imports and foreign currency borrowings. Experts warn that with the rupee “hurtling toward 90,” investors should hedge portfolios with global equities, gold, and export-oriented stocks.
Gold, meanwhile, surged ₹8,500 to reclaim the ₹1.3 lakh level, providing a safe-haven cushion amid currency turmoil.
Most sectoral indices ended sharply lower as sustained profit-booking and persistent FII outflows dragged the broader market into negative territory. Heavy selling was seen across media, metals, oil & gas, consumer durables and FMCG stocks, reflecting investors’ shift to caution amid currency weakness and global uncertainty. The broad-based decline highlighted growing risk aversion, with even fundamentally strong sectors witnessing pressure as traders opted to pare positions after recent highs.
Media
Metals
Oil & Gas
Consumer Durables
FMCG
PSU banks were the only notable exception, managing to stay in positive territory earlier in the day before cooling off.
Top Sector Performers and Laggards
Top Gainer Sector: Pharma (+0.08%)
Top Loser Sectors:
Consumer Durables (-0.44%)
Oil & Gas (-0.42%)
Media (-0.40%)
Metal (-0.36%)
FMCG (-0.20%)
The advance-decline ratio showed clear weakness:
Advancers: 1,084
Decliners: 2,007
52-week highs: 45
52-week lows: 180
India VIX: Down 3.41% at 11.23, indicating complacency despite corrections
The weak breadth signals that selling was not limited to heavyweight counters but widespread across market segments.
The list of Nifty gainers and losers highlighted the contrasting stock-specific action:
Asian Paints (+3.15%)
Dr Reddy’s (+1.30%)
Maruti (+0.92%)
Bharti Airtel (+0.87%)
SBI Life (+0.68%)
IndiGo (-1.62%)
ICICI Bank (-1.17%)
Reliance Industries (-1.80%)
HDFC Bank (-1.07%)
Axis Bank (-1.05%)
Heavyweights such as Reliance, HDFC Bank, ICICI Bank and Axis Bank contributed significantly to the drag on the indices.
In an otherwise weak market, several stocks saw sharp movement driven by company-specific developments. Biocon gained nearly 2% after resolving its dispute with Amgen, while NMDC edged higher on the back of an 11% rise in production. Afcons Infrastructure also traded firm, rising over 1% as it secured EPC orders worth ₹884 crore in November. Meanwhile, Websol Energy rallied 5% following the announcement of an MoU with Linton.
Biocon gained nearly 2% after settling a dispute with Amgen.
NMDC rose 1% after reporting an 11% production increase.
InterGlobe Aviation slipped 1.5% due to a ₹117.52 crore penalty by tax authorities.
Afcons Infrastructure gained 1.2% after securing ₹884 crore EPC orders.
Websol Energy jumped 5% after signing an MoU with Linton.
In the broader market, more than 100 stocks hit fresh 52-week highs, including Union Bank, Canara Bank, PNB, Federal Bank, GMR Airports, and Hero MotoCorp.
Meanwhile, over 240 stocks hit 52-week lows, including Bata India, KNR Construction, Deepak Nitrite, SJVN, and Colgate Palmolive.
The Nifty remained under pressure as it continued trading below key moving averages, signalling weak momentum. A rising trendline now acts as immediate support, and a break below it could pull the index toward 25,900. On the upside, resistance at 26,150 and 26,325 must be cleared for any meaningful recovery. Until then, the index is likely to stay in a bearish-to-sideways phase, keeping traders cautious.
Key Technical Observations
On hourly charts, Nifty remains below the 21-EMA, signaling bearish undertone.
A rising trendline offers support, but a breach could push the index toward 25,900.
Resistance is placed at 26,150; a breakout could improve sentiment.
A move above 26,325 is crucial to negate near-term selling pressure.
Critical support lies at 25,840, the recent swing low.
Market analysts expect the Nifty to remain in a bearish-to-sideways zone over the next few sessions.
The Bank Nifty managed to close in the green despite a volatile session, reflecting selective buying in banking heavyweights. However, the index’s daily chart shows a long upper shadow, hinting at selling pressure at higher levels. For now, 60,114 remains a critical resistance, while supports at 58,810 and 58,650 will be key zones to watch. Until a breakout occurs, traders are likely to adopt a cautious, range-bound strategy in the banking space.
A long upper shadow on the daily candle indicates profit-taking.
Resistance sits at 60,114, and any bounce may face supply.
Immediate support lies at 58,810, followed by 58,650.
Traders are advised to adopt a buy-near-support, sell-near-resistance strategy in the near term.
Market sentiment remained fragile as a sharply weakening rupee, persistent FII outflows, and rising uncertainty ahead of the upcoming Fed and RBI policy decisions kept investors on edge. The currency’s slide toward record lows sparked concerns over inflation and import costs, while global cues offered little reassurance. With domestic profit-booking adding to the pressure, traders largely stayed risk-averse, awaiting clearer signals on policy direction and macro stability.
Domestic Concerns
Weakening rupee and risk of hitting 90/$ level
FII outflows amid global risk aversion
Sectoral reshuffling by NSE, affecting banking heavyweights
Profit booking after record highs
Reduced expectations of an RBI rate cut, given India’s strong GDP numbers
Global Headwinds
US markets slipped as Treasury yields rose
Asian markets offered limited support
Investors cautious ahead of US Fed and RBI policy meetings
The market also reacted to a sharp contraction in India’s IIP data, adding to concerns about near-term growth.
Global cues offered little clarity as markets abroad delivered a mixed performance. US futures for the S&P 500, Nasdaq 100, and Dow Jones traded slightly lower, reflecting caution amid rising Treasury yields. In contrast, Asian markets showed modest resilience, with the MSCI Asia Pacific and MSCI Emerging Markets indices inching higher. Japan’s Topix remained largely unchanged, underscoring the lack of strong direction globally and contributing to the subdued sentiment in domestic equities.
In global trade:
S&P 500 futures: -0.1%
Nasdaq 100 futures: -0.2%
Dow Jones futures: -0.2%
MSCI Asia Pacific Index: +0.2%
MSCI Emerging Markets Index: +0.3%
Japan’s Topix: Flat
Global cues remained mixed, offering no clear direction for domestic equities.
With the rupee at historic lows, foreign outflows persisting, and policy events around the corner, analysts expect markets to remain in a cautious consolidation phase.
However, India’s strong macro fundamentals, corporate earnings resilience, and consistent domestic inflows are expected to provide medium-term stability.
The Nifty slipped below 26,000 primarily due to sustained FII selling, sharp depreciation in the rupee, sectoral weakness, and profit-booking at record highs. While long-term fundamentals such as GDP growth and corporate earnings remain healthy, short-term pressures from global cues, currency volatility, and policy uncertainty have weighed on sentiment.
A falling rupee typically hurts sectors dependent on imports—such as oil & gas, aviation, consumer durables, and FMCG—due to rising input costs. It may, however, support export-oriented sectors like IT, pharmaceuticals, and specialty chemicals. Sustained rupee weakness also triggers FII outflows, amplifying market volatility.
The Sensex is under pressure due to global risk-off sentiment, stronger US dollar trends, rising bond yields, and persistent selling by foreign investors. Even though domestic investors continue to buy on dips, their inflows are insufficient to offset large institutional outflows, leading to short-term index corrections.
Traders should monitor support at 25,900–25,840, which acts as a crucial demand zone. On the upside, resistance levels lie at 26,150 and 26,325. Sustained trading above these levels may signal recovery, while a breakdown below the support zone could trigger deeper consolidation.
Bank Nifty posted gains due to selective buying in large PSU and private-sector banks, stronger credit growth visibility, and favorable results from banking heavyweights. Despite intraday volatility, banking stocks found support near technical levels, helping the index outperform even as the broader market slipped.
Investors can hedge risks by diversifying into global equity funds, gold, and export-focused companies that benefit from a weak rupee. Maintaining cash positions, avoiding excessive leverage, and adopting a staggered buying approach can also help mitigate downside risks during periods of currency stress.
Most analysts view the fall as a short-term correction driven by currency volatility, global cues, and policy uncertainties. As long as the Nifty holds key support zones and domestic macros remain stable, the decline is likely a consolidation rather than a trend reversal. However, a break below major support levels could signal deeper weakness.
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