Sensex Crashes 961 Points, Nifty Slips Below 25,200 as ₹5 Lakh Crore Wealth Wiped Out in Broad Selloff
| Index | Price | Change | % Chg |
| Nifty 50 | 25,178.65 | 317.90 | -1.25% |
| Nifty Bank | 60,529.00 | 658.70 | -1.08% |
| Nifty Financial | 27,869.75 | 440.10 | -1.55% |
| BSE SENSEX | 81,287.19 | 961.42 | -1.17% |
Indian stock markets witnessed a sharp and broad-based decline on February 27, with benchmark indices ending near one-month lows as investors turned cautious amid weak global cues, persistent foreign institutional investor (FII) selling and rising geopolitical tensions. The correction erased more than ₹5 lakh crore in investor wealth, dragging the total market capitalisation of BSE-listed companies down to nearly ₹463 lakh crore, highlighting the scale of the selloff.
The BSE Sensex plunged 961.42 points or 1.17 percent to close at 81,287.19, after touching an intraday low of 81,159.15. Meanwhile, the Nifty 50 dropped 317.90 points or 1.25 percent to settle at 25,178.65, slipping decisively below the important 25,200 mark. This marked the first close below this level since early February, indicating weakening momentum.
Markets opened with a gap-down and remained under sustained selling pressure throughout the session. A sharp bout of selling in the final hours dragged the indices close to the day’s lows, reflecting a clear dominance of sellers across sectors. The decline also marked the second consecutive session of losses, suggesting a short-term corrective trend.
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India VIX: 13.70 (+4.89%)
The Indian rupee weakened to 91.02 per US dollar, reflecting pressure from foreign outflows and cautious global sentiment. Currency weakness further contributed to the negative mood in equities.
Also Read : Rupee Comes Under Fresh Pressure Against US Dollar in Early Trade as Currency Weakness Returns
Broad-Based Sectoral Selling Reflects Risk-Off Investor Sentiment
The market decline was marked by widespread selling across sectors, indicating a shift toward defensive positioning by investors. Most sectoral indices ended in the red, with economically sensitive sectors witnessing the sharpest declines.
Realty stocks emerged as the worst performers as investors reduced exposure to high-beta sectors. Auto, FMCG and metal stocks also declined sharply as investors locked in profits amid uncertainty in global markets.
Major sectoral moves included:
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Realty declined 2.26%
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Auto dropped 1.86%
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FMCG fell 1.69%
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Metal declined 1.67%
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Pharma fell 1.50%
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Banking stocks declined around 1%
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Telecom stocks slipped
The weakness across sectors clearly indicated that selling pressure was broad-based and not limited to a few individual stocks.
However, a few defensive sectors managed to close in positive territory. Media stocks led gains, while consumer durables and IT stocks ended marginally higher.
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Media gained 0.60%
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Consumer Durables rose 0.17%
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IT advanced 0.16%
IT stocks witnessed selective buying after sharp declines earlier in February, which helped limit the fall in benchmark indices.
Broader markets also witnessed profit booking, reflecting cautious sentiment among retail and institutional investors.
Both midcap and smallcap indices declined around 1 percent, indicating that the selling pressure extended beyond large-cap stocks.
Market breadth remained negative:
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Advancing stocks: 1,140
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Declining stocks: 1,992
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52-week highs: 56
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52-week lows: 255
More than 330 stocks touched fresh 52-week lows, including IRCTC, Suzlon Energy, ACC and Bajaj Housing Finance, signalling widespread risk aversion among investors.
Heavyweight Stocks Drag Benchmarks Lower
The sharp decline in benchmark indices was largely driven by weakness in heavyweight stocks across sectors. Selling in large-cap stocks amplified the fall and prevented any meaningful recovery during the session.
Major Sensex laggards included Sun Pharma, Bharti Airtel, Bajaj Finserv, InterGlobe Aviation, Mahindra & Mahindra and Maruti Suzuki. Since these stocks carry significant weight in benchmark indices, their decline had a major impact on the overall market direction.
Banking and auto stocks also remained under pressure, contributing significantly to the decline in the indices.
In contrast, gains were limited to a handful of stocks. IT stocks provided some support to the market as investors selectively accumulated beaten-down names.
Top gainers included:
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Trent +1.35%
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Infosys +0.76%
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HCL Tech +0.62%
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Apollo Hospitals +0.55%
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Eternal +0.41%
Top losers included:
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Adani Enterprises -2.68%
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Maruti Suzuki -2.50%
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Bharti Airtel -2.47%
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Grasim -2.43%
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Sun Pharma -2.40%
The weakness in auto and telecom stocks played a major role in dragging indices lower, while IT stocks provided limited support.
Stock-Specific Action Continues Despite Market Weakness
Despite the broad-based market decline, several stocks witnessed sharp movements driven by company-specific developments such as block deals, business announcements and brokerage upgrades.
Vishal Mega Mart shares plunged nearly 7 percent after block deals involving around 14 percent equity, which created selling pressure in the stock. Netweb Technologies rose around 4 percent after announcing a collaboration with Vertiv, indicating positive business prospects.
Other notable stock movements included:
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MSTC gained 2% after emerging as lowest bidder in a Coal India tender
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Infobeans Technologies jumped 7% as shares traded ex-bonus
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Mahanagar Gas rose nearly 2% after Ambit Capital upgrade
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RR Kabel gained 3% after Axis Capital upgrade
Nearly 100 stocks touched fresh 52-week highs, including Apar Industries, IOC, Lupin, Bharat Forge and Eicher Motors. This indicates that selective buying continued in fundamentally strong companies despite the overall market weakness.
Technical Breakdown Signals Weak Market Structure Ahead
From a technical perspective, the market showed clear signs of weakness as the Nifty slipped below key support levels and closed near the day’s lows.
The index has not only broken the 25,400 support zone but has also moved closer to the gap area around 25,100, indicating a deterioration in short-term structure.
More importantly, the Nifty has now fallen below its 200-day Exponential Moving Average (EMA), which is considered a key long-term trend indicator. This breakdown suggests that sellers remain firmly in control and near-term sentiment has turned negative.
Immediate technical levels:
Support:
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25,030–25,000 zone
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24,800 below that
Resistance:
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25,350–25,380 zone
Any pullback toward resistance levels is likely to face selling pressure unless strong buying emerges.
Key Factors Behind Today’s Sharp Market Fall
Persistent FII Selling
Foreign institutional investors continued to remain net sellers in Indian equities, which weighed heavily on market sentiment.
FIIs sold equities worth ₹3,465.99 crore, indicating continued caution among global investors.
However, domestic institutional investors provided support by buying equities worth ₹5,031.57 crore, helping prevent a deeper fall.
Persistent foreign outflows remain one of the biggest risks for Indian markets in the near term.
Weak Global Market Cues
Global markets remained mixed to negative, influencing domestic sentiment.
US markets showed weakness with technology stocks under pressure.
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Nasdaq declined more than 1%
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Nvidia fell around 5%
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Alphabet declined nearly 2%
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Amazon fell over 1%
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AMD dropped more than 3%
Weakness in global technology stocks affected investor confidence and triggered risk reduction across emerging markets including India.
Global futures also remained weak:
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S&P 500 futures down 0.3%
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Nasdaq futures down 0.2%
Rising US-Iran Geopolitical Tensions
Geopolitical tensions increased after US–Iran nuclear negotiations ended without a breakthrough, raising concerns about potential escalation in the Middle East.
Investors remained cautious amid uncertainty over oil prices and global economic stability.
Geopolitical tensions typically lead to safe-haven buying and reduced equity exposure, which contributed to the market decline.
Rupee Weakness Adds Pressure
The Indian rupee weakened amid foreign fund outflows and elevated dollar demand.
The rupee settled at 91.02 against the US dollar, compared with earlier levels near 90.95.
Currency weakness is often viewed as a negative signal by foreign investors and added to the cautious sentiment in equities.
Rising Volatility Signals Market Uncertainty
Market volatility increased sharply during the session.
The India VIX rose 4.89 percent to 13.70, indicating rising uncertainty and nervousness among traders.
Higher volatility typically leads to cautious trading behaviour and reduced risk-taking by investors.
Outlook: Nifty May Test 25,000 if Weakness Continues
Market experts believe the near-term outlook remains cautious as global and domestic uncertainties persist.
“There is cautious sentiment and persistent pressure from the bears. The prolonged sideways movement reflects the absence of momentum,” said Sudeep Shah of SBI Securities.
“Amid rising uncertainty over US-Iran developments and lack of fresh domestic triggers, investor participation is likely to remain selective,” said Ponmudi R of Enrich Money.
If selling pressure continues, the Nifty may test the 25,000 support level, with a possible extension toward 24,800.
Investors are advised to remain cautious, keep position sizes moderate and focus on fundamentally strong stocks until market stability returns.
FAQs Markets Sink Sharply as Sensex Slides and Nifty Breaks Lower
1. Why did Sensex fall nearly 1,000 points even though some sectors like IT stayed positive?
Sensex fell sharply because heavy selling in large-cap stocks such as auto, FMCG and telecom companies outweighed gains in IT and media stocks. Since benchmark indices are heavily influenced by large-cap stocks, declines in heavyweight companies triggered a sharp fall despite selective sectoral strength.
2. Does Nifty falling below 25,200 indicate the start of a deeper market correction?
Nifty falling below 25,200 is technically significant because it signals weakness after multiple failed attempts to hold higher levels. If the index fails to recover quickly, markets may test lower support zones near 25,000 or even 24,800 in the coming sessions.
3. How does ₹5 lakh crore wealth erosion in a single day affect long-term investors?
A single-day erosion of ₹5 lakh crore in market capitalisation reflects short-term volatility rather than permanent losses. Long-term investors are usually less affected if their portfolios consist of fundamentally strong companies, but repeated declines can impact overall portfolio returns and investor confidence.
4. Why are FIIs selling Indian stocks even when domestic investors continue buying?
Foreign Institutional Investors often react quickly to global risks such as geopolitical tensions, currency weakness and interest rate expectations. Domestic Institutional Investors tend to invest based on long-term growth prospects, which explains why DIIs continue buying even as FIIs sell.
5. How does a falling rupee influence stock market sentiment in India?
A weakening rupee signals capital outflows and higher import costs, which can negatively affect corporate earnings and investor sentiment. It also discourages foreign investors, leading to further selling pressure in equities.
6. Why do geopolitical tensions like US-Iran conflicts impact Indian stock markets so strongly?
Geopolitical tensions create uncertainty in global energy markets and financial systems. Since India depends heavily on oil imports and foreign investments, any global instability directly affects inflation expectations, currency stability and stock market sentiment.
7. Why are markets seeing repeated selling near resistance levels despite strong economic growth?
Repeated selling near resistance levels indicates that traders and institutional investors are locking in profits at higher prices. This behaviour usually happens during consolidation phases when markets prepare for the next major move.
