In Mumbai trading, the benchmark BSE Sensex fell 610 points or 0.71 percent to close at 85,102.69. The NSE Nifty 50 slipped 226 points or 0.86 percent to end at 25,960.55, breaking below the crucial 26,000 mark.
The sell-off was broad-based, with mid-cap and small-cap indices suffering deeper cuts. The BSE Midcap index dropped 1.73 percent and the Smallcap index fell 2.20 percent, reflecting heavy retail investor profit booking.
Key drivers of the fall included profit booking after recent gains, continued selling by foreign institutional investors, and caution ahead of the US Federal Reserve policy decision. Banking, IT, and energy stocks were among the worst hit, while defensive sectors such as FMCG showed relative resilience.
During the session, the Sensex plunged as much as 836 points intraday, hitting a low of 84,875.59 before recovering slightly towards the close.
Analysts noted that investors turned defensive ahead of the Fed’s decision, fearing tighter monetary policy could trigger further foreign outflows. Domestic factors such as muted corporate earnings guidance and concerns over liquidity also contributed to the cautious mood.
The sharp fall erased significant market capitalization, impacting retail portfolios. India VIX rose, indicating heightened uncertainty in the near term. Experts suggest markets may remain volatile until clarity emerges from global central bank actions.
