The market took a beating today. The Sensex fell hard, dropping over 700 points at one point. This sell-off was widespread. It hit Dalal Street with real force. Investors are nervous. Let’s be real.
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Sensex Tumbles 700 Points: Why Markets Are Falling
Benchmark indices slumped sharply on Monday. Selling pressure dragged down the entire market. Both global and domestic worries fueled the fall.
The Numbers
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Sensex: Down 722.60 points. It traded at 84,989.77 around 1:51 PM.
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Nifty50: Down 250.85 points. It traded at 25,936.45.
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Wider Damage: Mid-cap and small-cap stocks saw sharper cuts. They mirrored the weak mood. Volatility spiked fast. This signals high nervousness on Dalal Street.
The Causes: Why the Selling Started
The selling was not due to one thing. It was a mix of mounting risk factors.
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FII Selling Continues: Foreign institutional investors (FIIs) keep selling Indian equities. This is a major drag. V K Vijayakumar, Chief Investment Strategist at Geojit Investments, points to the weak rupee. It is forcing FIIs to pull money out.
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Global Risk: Vijayakumar flagged a spike in Japanese bond yields. A sharp rise here could trigger fresh unwinding of the yen carry trade. This would accelerate outflows from emerging markets like India.
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Sectoral Hit: PSU banking stocks led the decline. Selling hit realty and chemical stocks hard. Weak institutional flows and profit-booking in interest-rate sensitive sectors weighed on sentiment.
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US Fed Caution: Many investors pulled back ahead of the upcoming US Federal Reserve interest rate decision. Uncertainty always makes traders cautious.
The Good News (The Kicker)
India’s core economic situation remains strong. This is the thing that keeps the market supported long-term.
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The economy posted 8.2% GDP growth in Q2.
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The RBI recently upped its FY26 GDP growth forecast to 7.3%.
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Leading indicators suggest 15% corporate earnings growth is achievable in FY27. That remains constructive for stocks.
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The Outlook
Markets are caught between this strong domestic growth and global risk factors. You have positives. You have negatives. Analysts expect this elevated volatility to persist in the near term. So, the ride stays rough for now.
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