Indian equity markets ended Thursday (February 19) on a sharply weaker note as a broad-based sell-off erased gains from the previous sessions and pulled benchmark indices decisively lower. The BSE Sensex declined by about 1,236 points from the previous close to end near 82,500, while the NSE Nifty 50 fell by roughly 365 points, settling around 25,450.
The decline marked one of the steepest single-day falls in recent weeks, reflecting a sudden shift in sentiment driven by global risk aversion, profit booking and renewed macroeconomic concerns. The sharp point-wise decline reflected broad-based selling pressure and a clear shift towards risk aversion during the session.
After opening on a mildly positive note, markets quickly lost momentum as selling pressure intensified through the day, particularly in the afternoon trade. The late-session weakness suggested institutional investors turning cautious rather than retail-led volatility.
Sectoral performance underscored the risk-off mood. Banking and financial stocks were among the biggest drags, with heavyweight lenders facing sustained selling amid concerns over valuation comfort and global interest rate uncertainty. Auto stocks also came under pressure, reflecting worries over demand sustainability and rising input costs, while FMCG names, which had recently provided defensive support to the indices, failed to hold ground as investors cut exposure across the board. Metals and realty stocks declined as well, mirroring weakness in global commodity cues and higher bond yields.
The broader market fared worse than the benchmarks, with mid-cap and small-cap indices registering sharper percentage losses. Market breadth was decisively negative, indicating that the selling was not confined to a handful of large stocks but spread widely across sectors and market capitalisations. This pattern suggested a clear preference for capital preservation rather than selective rotation.
"Volatility spiked on Thursday as India VIX (volatility index) rose 7.45% to 13.13 amid Sensex F&O expiry. The correction was further aggravated by rising crude prices, escalating US–Iran geopolitical tensions, and mixed signals from the US Fed minutes, which added to global uncertainty," said Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth.
He added that the move reflects volatility-driven profit booking and global risk repricing rather than a structural reversal. "However, with key supports breached and volatility elevated, markets may remain cautious and range-bound with a negative bias in the immediate term," Hariprasad said.
From a macro perspective, global developments weighed heavily on sentiment. Heightened geopolitical tensions overseas, coupled with firm crude oil prices, raised concerns about inflationary pressures for oil-importing economies like India. At the same time, uncertainty over the trajectory of global interest rates and the timing of any policy easing by major central banks added to investor caution. These external factors amplified domestic profit booking after a short-lived rally earlier in the week.
Technically, the breach of key support levels on the Nifty reinforced the bearish undertone. The inability of the market to hold early gains and the sharp increase in intraday volatility pointed to nervous positioning ahead of upcoming global cues. Traders appeared unwilling to carry aggressive long positions, leading to accelerated selling once support zones gave way.
In terms of near-term outlook, market participants are likely to remain cautious. While sharp declines often invite bargain hunting, sustained recovery will depend on stabilisation in global markets, clarity on interest rate expectations and easing of geopolitical risks. Until then, volatility is expected to remain elevated, with stock-specific moves driven more by risk management than fresh conviction. Thursday’s close, therefore, reflects not just a reaction to a single trigger but a broader reassessment of risk in an uncertain global environment.