D-Street Takes A Beating As Sensex Slides 1,300 Points, Nifty Breaks Below 25,450

Domestic equity benchmarks turned sharply lower in afternoon trade after opening on a firm note. The BSE Sensex declined 1,328.91 points, or 1.59%, to close near 82,405, while the Nifty 50 fell 384.5 points, or 1.49%, to trade below 25,450. Market breadth remained weak, with declining shares significantly outnumbering advancing ones.

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Only four stocks in the Nifty 50 were trading in positive territory, underscoring the extent of selling pressure. All sectoral indices ended in the red, reflecting a broad-based correction rather than stock-specific weakness.

Profit Booking After Recent Rally

The sell-off followed profit booking after markets had risen for three consecutive sessions earlier in the week.

Both the Sensex and the Nifty had gained around 1.4% over the previous three days, supported by December-quarter earnings that broadly met expectations. The reversal suggested investors chose to lock in gains amid uncertain global cues.

Crude Oil Prices Add Pressure

Rising crude oil prices added to the negative sentiment. Oil prices remained elevated after a sharp surge in the previous session on concerns around potential supply disruptions linked to geopolitical tensions in the Middle East. Higher crude prices tend to raise inflation and fiscal concerns for India, weighing on equity markets.

Banking Stocks Drag Indices Lower

Banking stocks contributed significantly to the decline. Shares of Kotak Mahindra Bank, Axis Bank and IndusInd Bank fell between 1% and 1.8%. The Bank Nifty index slipped close to the 61,000 level, adding further pressure on headline indices.

Financial services stocks such as Shriram Finance, Bajaj Finance and SBI Life Insurance also declined between 1% and 2%.

Volatility Picks Up Across Markets

Market volatility rose sharply during the session. The India VIX index gained over 8%, signalling increased near-term uncertainty. The rise in volatility coincided with the Sensex derivatives expiry, which typically amplifies intraday market swings.

Overall, the session reflected heightened caution among investors, with selling seen across large-cap, mid-cap and small-cap stocks as markets reacted to a combination of global and domestic risk factors.