Sensex Suffers a Sharp Fall Over 600 Points Wiped Out in Early Trade
Indian stock markets witnessed a sharp jolt on Tuesday morning as global uncertainty and persistent profit-booking dragged benchmarks lower. The Sensex slipped over 600 points in early trade, falling below the crucial 85,000 mark, while the Nifty cracked under 25,800, signaling intensifying weakness across sectors such as banking, IT, and metals. After a strong rally in recent weeks, this downturn reflects how sensitive markets have become to global triggers and stretched valuations.
The recent uptrend was largely powered by select heavyweights, while the broader market failed to keep pace. Market experts point out that even when the Nifty clocked record highs, a major chunk of mid- and small-cap stocks were already trading in correction zones. This imbalance kept many retail investors cautious, especially those holding portfolios concentrated in smaller companies. Now that the selling wave has hit the entire market, mid- and small-caps are taking a heavier blow, rapidly shedding inflated valuations. Analysts believe that although the correction may continue in the short term, it could eventually open attractive long-term opportunities, especially in segments like defence where value is emerging.
Technical charts too are hinting at ongoing weakness. A clear breakdown below support levels increases the possibility of Nifty drifting towards 25,650, unless buyers regroup and push it back above 26,000. Traders remain watchful as intraday volatility rises, and many are advised to stay light and avoid aggressive leveraged positions until stability returns.
Adding fuel to the pressure is the persistent selling by foreign institutional investors. FIIs continued their exit streak, withdrawing over Rs 655 crore in equities. Thankfully, domestic institutional investors stepped in with strong buying worth Rs 2,542 crore, helping absorb some of the panic-driven decline. But for the broader market, concerns remainglobal worries, uneven liquidity and cautious sentiment are likely to keep volatility elevated in the coming days.
For now, investors are stuck balancing fear and opportunity. Those with a long-term outlook may find value emerging slowly, but patience and discipline will be key. The market’s recent fall serves as a reminder: rallies may be sharp, but corrections can be even sharper especially when confidence hangs by a thread.
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