Sensex Falls 300 Points, Nifty Slips Below 25,950 as Rupee Hits Record Low; Market Decline Extends to Fourth Day

The Indian stock market extended its losing streak to a fourth straight session on Wednesday, with benchmark indices Sensex and Nifty tumbling under the pressure of a record-low rupee, sustained foreign fund outflows and weakness in banking stocks. Persistent selling by foreign investors and a sharp slide in the domestic currency kept overall sentiment fragile through the morning session.

Sensex Down 332 Points, Nifty Breaks Below 25,950

At around 10:20 am, the Sensex fell 332.16 points (0.39%) to 84,806.11, while the Nifty declined 119.50 points (0.46%) to 25,912.70, slipping below the 25,950 mark. This followed three consecutive sessions of weakness, signalling consistent profit booking across sectors.

Market breadth also remained weak.

• 1,145 shares advanced

• 2,113 declined

• 160 remained unchanged

Major Laggards and Gainers

Among the top laggards on the Nifty50:

• Max Healthcare Institute,

• Shriram Finance, and

• Coal India

—all declined up to 3%.

In contrast, IT stocks showed some resilience, with:

• Wipro and

• Tata Consultancy Services (TCS)

rising to 2% and emerging as the major gainers.

Also Read: Government Eyes Mega Public Sector Bank Merger by FY27

Key Factors Behind the Market Decline

Below are the primary triggers weighing down the benchmark indices today:

1) Rupee Hits Fresh All-Time Low Near 90.13/USD

The biggest factor dragging the market lower was the record decline in the rupee, which opened at 89.96 against the US dollar and then slid to 90.1325, marking its weakest level ever. The currency had ended the previous session at 89.87.

The rupee hit this new low due to:

• Persistent equity outflows

• Uncertainty surrounding the India–US trade deal

• Repeated delays in timelines that worsened sentiment

Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, noted that the rupee falling below the 90-mark for the first time reflects markets looking for “concrete numbers rather than broad assurances.”

He added that the absence of clarity around the trade deal has led to “accelerated selling in the rupee over the past few weeks.”

Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the currency’s continued depreciation and fear of further weakness has contributed to the “slow drifting down of the market.” This has also pushed FIIs to continue selling.

2) Persistent FII Selling Continues

Foreign Institutional Investors (FIIs) have remained net sellers, intensifying pressure on Indian equities.

On Tuesday, FIIs sold ₹3,642.30 crore worth of shares, marking the fourth consecutive session of outflows. This sustained selling streak has created additional pressure on benchmark indices.

Prashanth Tapse, Senior VP (Research) at Mehta Equities, said:
“FII outflows, a record-weak rupee and pressure on banking stocks keep sentiment fragile.”

3) Banking Stocks Under Pressure

Banking and financial stocks were among the worst hit in today’s decline, with broad-based selling across both PSU and private-sector lenders.

PSU Banks Extend Losses

PSU banks remained under pressure after the government clarified it has no plans to raise the foreign direct investment (FDI) limit in state-owned banks from 20% to 49%.

As a result, the Nifty PSU Bank index was down nearly 2% at 10:10 am.

Private Banks Also Decline

Private lenders also saw weakness:

• Bandhan Bank and

• Kotak Mahindra Bank

fell up to 1%.

The Bank Nifty itself slipped 0.4%, largely due to index rejig adjustments.

Vijayakumar added that Nifty’s latest fall of around 300 points from its record high is “technically driven,” mainly due to the Bank Nifty rejig and concerns around the rupee. He clarified that the weightage reduction of HDFC Bank and ICICI Bank is purely technical and not related to fundamentals.

Technical View: Key Levels to Watch

According to Anand James, Chief Market Strategist at Geojit Financial Services:

• The Nifty’s slide extended toward 26,060 on Tuesday

• There are “no signs of regrouping by bulls”

• Support zones now lie at 25,860–25,700

If this zone fails, fears point to a potential drop toward 25,300.

Resistance Levels

• Immediate resistance: 26,087–26,111

• A move above 26,200 would be required to signal a recovery

Disclaimer

The expert views mentioned are those of the respective analysts and not of this publication. Investors should consult certified financial advisors before making investment decisions.

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