Markets hit 3-month low: Sensex plunges 1,065 pts, Nifty settles below 25,250; geopolitical jitters erase ₹9.4 lakh crore

Indian equity markets witnessed a broad-based sell-off on Tuesday, with benchmark indices Sensex and Nifty sliding to their lowest levels in over three months as global risk sentiment deteriorated amid rising geopolitical tensions and weak overseas cues. The decline was deep and widespread, with broader markets bearing the brunt of the correction.

During the session, the Nifty 50 fell as much as 1.61%, or 413 points, to an intraday low of 25,171.3, while the 30-share Sensex dropped 1.4%, or 1,235 points, to 82,010.58 — its lowest level since October 2025. The indices eventually settled lower by 1.38% and 1.28% at 25,232.50 and 82,180.47, respectively.

Investor wealth took a significant hit, with the total market capitalisation of BSE-listed companies shrinking by nearly ₹9.4 lakh crore to ₹455.82 lakh crore.

“Renewed U.S. tariff uncertainty has revived trade-war fears, lifting Treasury yields and triggering global sell-offs that dragged Indian equities lower. Market volatility is expected to persist until clarity emerges on the U.S.–Europe tariff standoff over Greenland, with geopolitical and geoeconomic factors continuing to drive market direction,” Bajaj Broking said in a note.

Broader markets see sharper correction

Broader markets underperformed frontline indices, reflecting heightened risk aversion. The Nifty Midcap 100 index slumped 2.62%, while the Nifty Smallcap 100 index plunged 2.85%.

Market breadth on the BSE remained decisively negative. Of the 4,314 stocks traded, only 780 advanced, while 3,395 declined and 139 remained unchanged, underscoring the intensity of selling pressure beneath the index level. Data also showed that just 65 stocks touched fresh 52-week highs, whereas a significant 713 stocks slipped to new 52-week lows.

Nifty Realty emerges as top laggard

Sectorally, all indices ended in negative territory. Nifty Realty was the worst performer, tumbling over 5% as profit-taking intensified in the final hour of trade. Auto, Consumer Durables and Chemicals stocks also saw steep losses of 2.5–2.8%, amid concerns over demand visibility and rich valuations.

The IT index fell over 2%, tracking weak global tech cues and a firmer dollar outlook, while Metal, Pharma and Healthcare indices declined close to 2% each. Financial stocks showed relative resilience but still ended lower, with Nifty Financial Services, Private Banks and PSU Banks declining by up to 1.3%.

Bajaj Finance, Sun Pharma lead losses

Within the Sensex pack, 29 of the 30 stocks closed in the red. Bajaj Finance led the losses, tumbling 3.88%, followed by Sun Pharma, which declined 3.68% amid broad-based weakness in pharma stocks.

Consumer-facing stocks such as Trent (-2.89%), Asian Paints (-2.84%) and M&M (-2.83%) also saw sharp cuts. IndiGo fell 3.04%, Adani Ports slipped 2.40%, while Tata Steel declined 2.50%. IT majors Tech Mahindra (-2.32%), TCS (-1.74%) and HCL Tech (-1.48%) remained under pressure.

HDFC Bank stood out as the lone gainer among frontline stocks, rising 0.38% to close at ₹931.15. SBI was largely flat, easing 0.10%, while ICICI Bank and Kotak Mahindra Bank declined 0.28% and 0.69%, respectively.

Geopolitical tensions weigh on sentiment

Ajit Mishra, SVP–Research at Religare Broking, said market sentiment remained subdued due to mixed corporate earnings and renewed concerns around geopolitical tensions and global trade developments. “Persistent foreign institutional selling, coupled with a weaker currency environment, further weighed on investor confidence and kept risk appetite restrained throughout the session,” he said.

Vinod Nair, Head of Research at Geojit Investments, noted that domestic markets remained cautious ahead of the U.S. Supreme Court’s ruling on Trump-era tariffs, with renewed uncertainty over U.S. trade policy prolonging the recent consolidation. Continued FII outflows, rising U.S. and Japanese bond yields, and a weakening rupee also weighed on sentiment.

In the near term, market direction is likely to hinge on the progress of the earnings season, while geopolitical developments and global trade conditions will remain key influences.

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