Indian Stock Market Crash: Sensex, Nifty Plunge As All Sectors Bleed

Indian stock markets plunged on Monday, with Sensex falling over 600 points and Nifty dropping below 26,000. All sectors ended in the red, dragged down by weak global cues, FII outflows, and a depreciating rupee ahead of the US Fed meeting.

Indian stock benchmarks sharply tilted downwards on Monday, starting the fresh week on a dampening note, with all sectoral indices in the red, due to a host of factors, both local and global.

Media, metal, pharma, PSU banks, private banks, realty, consumer durables, chemicals, and all others, tanked sharply during the session. Sensex closed at 85,102.69 points, down 609.68 points or 0.71 per cent, while Nifty closed at 25,960.55, down 225.90 points or 0.86 per cent, respectively.

Sectoral and Stock Performance

"On the sectoral front, none of the sectors ended in green. Nifty India Defence was the top sectoral loser, losing 3.68 per cent, followed by Nifty Realty, which continued its underperformance, closing 3.53 per cent lower. With regards to stocks, TechM and Wipro managed to end the day in green with Nifty IT continuing to show relative outperformance vis-a-vis other sectors. Indigo and BEL emerged as the top two losers," Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, said.

Broader Market Under Pressure

The Small Cap index saw sharp selling pressure, closing 2.61 per cent lower, its biggest single-day fall since September 26, 2025. "The intensified decline reflects weakening risk appetite in the broader market, signalling caution as the index continues to underperform and shows vulnerability to further downside," added Shah.

Key Factors Driving the Downturn

The markets completely engulfed Friday's gains. "Sentiment weakened primarily due to rising caution ahead of the upcoming Fed meeting, with investors worried about the possibility of a tighter global monetary stance and its spillover impact on emerging markets. The sustained weakness in the rupee and continued FII outflows further aggravated concerns around inflation and import-cost pressures, adding to the bearish tone," Ajit Mishra - SVP, Research, Religare Broking Ltd, said.

Sensex and Nifty on a cumulative basis have risen 8-9 per cent so far in 2025, data showed.

Vinod Nair, Head of Research, Geojit Investments Limited, "Despite robust domestic growth figures and the RBI's recent rate cut, short-term sentiment remains overshadowed by global monetary policy concerns, persistent FII outflows, and currency depreciation."

Indian Rupee Hits All-Time Low

The Indian Rupee registered its second consecutive day of depreciation with analysts attributing it to the Reserve Bank of India's decision to reduce the benchmark interest rate and introduce accompanying liquidity measures, both of which exerted downward pressure on the currency.

"This policy easing, combined with prevailing risk-averse market sentiment and continued foreign fund outflows, further contributed to the rupee weakness," Dilip Parmar - Senior Research Analyst, HDFC Securities, said.

"From a technical perspective, the spot USD-INR is expected to encounter near-term resistance at the 90.40 level, with critical support established at 89.70."

Indian rupee breached the 90 mark against USD last Wednesday, and in the process hit a fresh all-time low for the Indian currency. (ANI)

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