The Indian markets saw a rather brutal twist in the trade. After starting on a quiet note, the sell-off gained momentum in late trade. The key indices plunged firmly into bear territory (February 19).
What began as a cautious opening bell soon turned into a broad-based sell-off. This also left many investors rattled by the closing bell. This was due to heavy selling across sectors that dragged benchmark indices sharply lower.
From rising crude oil prices to global geopolitical tensions and a spike in volatility, many triggers combined to push markets deep into the red.
Here’s a closer look at how the day unfolded –
A bruising close for Sensex and Nifty
The Sensex ended at 82,498.14, down 1,236.11 points or 1.48%. The Nifty settled at 25,454.35, falling 365 points or 1.41%.
The Sensex fell 1,715.16 points from the day’s high of 83,979.36 to the low of 82,264.20.
The broader market also mirrored the pessimism. BSE midcap and smallcap indices declined over 1% each. The indices are trading close to their 2026 lows.
All sectors end in red
Every Nifty sectoral index closed in negative territory. Auto, media and realty stocks were among the worst hit, each declining over 2%.
Meanwhile, FMCG, IT, metals, financial services, consumer durables and oil & gas stocks dropped between 1-2%.
Heavyweights drag the benchmarks
Within the Sensex 30 pack, all stocks ended lower. Key losers in the Sensex 30 pack included IndiGo, which fell over 3%, along with Mahindra & Mahindra, UltraTech Cement, Trent and Bharat Electronics, each declining sharply.
The Nifty 50 also reflected similar trends, with IndiGo, UltraTech Cement, M&M, BEL and Trent among the major losers. Only a handful of stocks attempted to resist the tide. ONGC managed to close about 3.6% higher, while HDFC Life and Hindalco ended marginally in the green.
Crude oil surge adds to concerns
One of the key triggers for the day’s fall was the continued rise in crude oil prices. Brent crude futures climbed above $71 per barrel on Thursday, extending gains of over 4% from the previous session.
The surge comes amid growing concerns over possible supply disruptions. This is especially due to escalating tensions between the United States and Iran.
Volatility spikes sharply
Market nervousness was clearly visible in the India VIX, often referred to as the fear gauge. The volatility index surged around 10% during today’s trading session.
Investor wealth takes a hit
The day’s sell-off also impacted overall market capitalisation. Investors saw nearly Rs 8 lakh crore wiped out as the total market value of BSE-listed companies dropped to around Rs 464 lakh crore.
Global tension dampen sentiment
Investor sentiment has turned cautious due to rising global tensions. Reports suggesting that the United States military could carry out a strike on Iran as early as this weekend have added to nervousness.
Any escalation could disrupt oil supply routes, particularly around the Strait of Hormuz, and create instability in global markets.
US stock futures were also trading in the red. Dow futures were down 172.20 points or 0.35% at 9,490.46.
Expert outlook
Vinod Nair, Head of Research, Geojit Investments, said “The bears took charge of the Indian market as rising geopolitical tensions between the US and Iran unsettled global sentiment leading to a broad based sell-off. Brent crude surged to its YTD high, exacerbating inflationary concerns and triggering heightened market volatility on fear of bottlenecking of Strait of Hormuz. At the same time uncertainty surrounding the US Fed’s rate-cut trajectory and continued weakness in the INR impacted the domestic market. Sell-off intensified due to low FII participation because of Lunar New Year holiday across key Asian markets and a non-settlement day on account of a regional banking holiday in India,” Vinod Nair, Head of Research, Geojit Investments.
Technical charts turn weak
From a technical perspective, the charts also painted a negative picture. According to Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities, “The benchmark quickly lost momentum and slipped into a persistent downtrend, forming a clear pattern of lower tops and lower bottoms throughout the session. Selling pressure intensified as the day progressed, dragging the index to a close at 25454, marking a sharp decline of 1.41%.”
“What makes the day’s move particularly significant is the extent of the correction. The intraday slide almost completely wiped-out gains accumulated over the previous three trading sessions, culminating in the formation of a large bearish candle on the daily chart. Adding to the technical weakness, Nifty also breached key short-term and medium-term supports by decisively slipping below its 20 day, 50 day and 100 day EMA levels—an indication that bearish sentiment has strengthened in the near term,” he added.
