CHENNAI: On Thursday, Indian equity markets experienced a sharp sell-off as the benchmark Nifty 50 index fell below the psychologically important 26,000 level and the BSE Sensex slumped by around 658 points, extending losses for the fourth straight session. The downturn reflected deepening concerns among investors about global trade tensions, persistent foreign fund outflows, and heavy selling in key heavyweight stocks that together eroded confidence across the market.
At noon, benchmark indices continued to trade firmly in the red, with the Nifty slipping deeper below the 26,000 mark, while the Sensex hovered lower as sustained selling pressure kept market sentiment weak.
The decline accelerated in mid-morning trade, with both indices in negative territory soon after the opening bell. Markets across most sectors turned red, and broader mid-cap and small-cap indices also posted losses, indicating that the selling pressure was widespread rather than restricted to a few segments. The total erosion of market capitalisation ran into several lakh crore rupees, underscoring the severity of the move and the anxiety gripping Dalal Street.
Investors pointed to renewed fears about U.S. tariff threats and geopolitical uncertainties as critical triggers for the rout. Reports that the US could impose significantly higher tariffs on Indian goods rekindled worries about trade friction, particularly impacting export-oriented and heavyweight companies. In this climate of heightened risk aversion, foreign institutional investors continued to offload Indian equities, adding to downward momentum and weakening the rupee as well.
Among the most actively watched names, Reliance Industries and Infosys were noteworthy drags on the benchmark indices. Reliance, long a major market mover due to its large index weight, came under selling pressure, while Infosys, representative of the broader IT sector, also dipped amid fears of slowing global demand and mixed earnings outlook. The weakness in these and other bellwether stocks amplified the slide, as profit-booking intensified among portfolios that had benefited from earlier gains.
The sell-off followed a pattern of technical breakdowns observed over recent sessions, with markets breaching key support levels that had previously underpinned investor confidence. Analysts noted that once the Nifty slipped below 26,000, a psychological support, algorithmic and technical selling was triggered, compounding the losses. Market breadth deteriorated as the number of declining stocks significantly outpaced those advancing.
Sentiment was further tempered by mixed corporate earnings and caution ahead of upcoming macroeconomic data releases. Although some companies reported resilient performance, the overarching narrative remained one of uncertainty, with traders and long-term investors alike taking a defensive stance.
As markets concluded the trading session deeply in the red, participants signalled that the road ahead could remain volatile until clearer resolutions emerge on trade negotiations and global economic direction. Until such clarity arrives, the focus for many will be on defensive sectors and potential support zones that might halt or reverse the current downtrend.