Tuesday turned into a nightmare for Indian investors as the stock market witnessed a dramatic collapse. The benchmark Sensex plunged a staggering 1066 points, closing at 82,180.47. This represents a sharp decline of 1.28 percent.
Worst Performance in Months
In percentage terms, this marks the most severe single-day drop for the Sensex in more than eight months. The last time the market experienced such a significant fall was on May 13, 2025. The selling pressure was not limited to large-cap stocks alone.
Midcap and Smallcap Indices Hit Hard
The BSE Midcap and Smallcap indices suffered even deeper cuts, each crashing more than 2.5 percent. The overall market capitalisation of companies listed on the Bombay Stock Exchange took a massive hit. It plummeted to nearly ₹456 lakh crore from approximately ₹468 lakh crore recorded on Friday.
This sharp erosion in value made investors poorer by about ₹12 lakh crore in just two consecutive trading sessions. The widespread selloff dragged every single sectoral index into negative territory, painting a uniformly bleak picture across the board.
Only Three Gainers in Nifty 50
Amid the carnage, only three stocks managed to end the day in positive territory within the Nifty 50 index. Dr. Reddy's Laboratories saw a modest gain of 0.46 percent. HDFC Bank and Tata Consumer both inched up by 0.28 percent each.
Major Losers Lead the Decline
On the losing side, several prominent names led the downward charge. Adani Enterprises tumbled 3.96 percent, while Bajaj Finance dropped 3.89 percent. Jio Financial Services fell 3.72 percent, rounding out the top losers in the index.
Over 700 Stocks Hit Yearly Lows
The selling intensity was so severe that more than 700 stocks hit their 52-week lows on the BSE. Among Sensex constituents, ITC and Trent both touched their lowest levels in a year.
A broad range of other companies also joined this unfortunate list. Notable names hitting one-year lows included:
- IRCTC
- Indian Hotels Company
- Havells India
- UBL
- Procter & Gamble Hygiene and Health Care
- Adani Total Gas
- Bajaj Housing Finance
- Siemens Energy India
- Godrej Properties
- Lodha Developers
- L&T Technology Services
- Mankind Pharma
- Page Industries
What Triggered the Market Fall?
Market analysts point to several key factors behind this sharp correction. The primary triggers appear to be former US President Donald Trump's tariff threats and heavy selling by Foreign Institutional Investors (FIIs).
Multiple Headwinds Converge
Other contributing elements include mixed third-quarter earnings reports from Indian companies. Caution ahead of the upcoming Union Budget also played a role. Additionally, investors are increasingly shifting toward safe-haven assets amid growing geopolitical risks worldwide.
Vinod Nair, Head of Research at Geojit Investments Limited, explained the market sentiment. "Domestic markets remained cautious ahead of the US Supreme Court’s ruling on Trump-era tariffs," he said. "Renewed uncertainty over US trade policy is prolonging the recent consolidation. Continued FII outflows, rising U.S. and Japanese bond yields, and a weakening rupee have all weighed heavily on investor confidence."
The combination of these factors created a perfect storm that battered Indian equities. Market participants now await clearer signals on both domestic and global fronts before committing fresh capital.
