suffered a sharp broad-based selloff on Wednesday, with the Nifty50 closing at its lowest level in nearly 10 months, as escalating geopolitical tensions in the , a firming dollar and persistent foreign institutional selling battered investor confidence.
The plunged 1,342.27 points or 1.72 per cent to close at 76,863.71, while the shed 394.75 points or 1.63 per cent to end the session at 23,866.85 — slipping below the psychologically critical 24,000 mark for the first time since the record highs seen at the start of 2026.
Markets opened on a subdued note — the Sensex at 78,238.91 and Nifty at 24,231.85 — but faced relentless selling pressure through the day. A brief recovery attempt in the latter half failed to sustain, and both indices settled near their day’s lows.
Ajit Mishra, SVP Research, Religare Broking, said markets “resumed their corrective phase amid weak global cues and heightened geopolitical tensions,” adding that “concerns over potential disruptions to crude oil supply, rising inflationary pressures and the possible impact on economic growth kept participants cautious.”
The rout was broad-based. Of the 4,414 stocks traded on the BSE, 2,423 declined against 1,850 advances, while 141 remained unchanged. A total of 200 stocks hit 52-week lows versus only 74 at 52-week highs.
Eight stocks were locked in the lower circuit. Nifty Financial Services was among the hardest-hit sectoral indices, dropping 2.32 per cent to 25,920.80, while Nifty Bank fell 2.13 per cent to close at 55,735.75, erasing the entire gains of the previous session.
Nifty Midcap 100 lost 1.25 per cent to 56,461.10, and Nifty Next 50 declined 1.08 per cent to 66,498.65. Nifty Smallcap 100 showed relative resilience, shedding just 0.36 per cent to close at 16,414.85.
Sectoral performance was heavily skewed to the negative side. Auto was the worst-hit sector, losing over 3 per cent, followed by financial services and banking. Selective buying in pharma and oil & gas provided limited support, with Nifty Pharma closing as the top sectoral gainer and Nifty Oil & Gas adding 0.18 per cent.
Among Nifty50 gainers, Jio Financial Services (JIOFIN) rose 1.06 per cent to ₹238.50, Coal India added 0.76 per cent to ₹446.90, Sun Pharma gained 0.62 per cent to ₹1,824, Dr. Reddy’s Laboratories climbed 0.59 per cent to ₹1,322.40, and ONGC edged up 0.52 per cent to ₹270.60.
On the losing side, Bajaj Finance was the top laggard, tanking 4.88 per cent to ₹893.95, followed by Axis Bank which fell 4.62 per cent to ₹1,254. Bajaj Finserv dropped 3.81 per cent to ₹1,796.60, Eicher Motors declined 3.66 per cent to ₹7,261, and Mahindra & Mahindra lost 3.51 per cent to ₹3,178.
Technically, the market structure remains weak. Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, noted that Nifty “formed a sizeable bearish candle” and that “the RSI remains in a falling trajectory and is currently placed near 30, reflecting weak momentum,” while “a rising ADX signals strengthening bearish trend intensity.”
From a derivatives perspective, Dhupesh Dhameja of SAMCO Securities pointed out that the Put-Call Ratio stands near 0.61, signalling a bearish undertone, with significant call open interest at the 24,300 strike acting as a strong resistance wall. India VIX spiked 11.41 per cent to settle at 21.06, signalling heightened volatility ahead.
The Indian rupee also came under pressure. Dilip Parmar, Senior Research Analyst at HDFC Securities, attributed the decline to “intensified geopolitical tensions in West Asia” that have “triggered risk-averse sentiment and pushed crude oil prices higher,” compounding capital outflows from domestic equity and debt markets. Spot USDINR finds immediate support at 91.60 with key resistance at 92.40, he added.
Gold traded in a narrow range, with MCX gold near ₹1,62,400 and CME near $5,195, as traders turned cautious ahead of US CPI data.
Jateen Trivedi, VP Research Analyst at LKP Securities, said MCX gold is expected to move within a “₹1,58,000–₹1,64,000 range, with inflation data and energy price movements remaining the key drivers,” particularly as the Federal Reserve’s policy meeting approaches next week.
On the outlook, Rahul Singh, CIO–Equities at Tata Asset Management, noted that while near-term sentiment may remain sensitive to global developments, the Nifty at around 20 times earnings reflects more reasonable valuations.
He added that “earnings growth for the Nifty50 is expected to remain healthy at around 15–17 percent over FY26–FY27,” with consumer and pharma sectors likely to remain relatively insulated.
Technically, Gaurav Udani of Thincredblu Securities warned that “until we see a strong close above 24,450, the bias is likely to remain weak,” with a decisive break below the 23,600–23,800 support band potentially accelerating the decline toward 23,200.
For Bank Nifty, key support lies in the 55,300–55,400 zone; a break lower could drag it toward 54,500.