Why Is the Stock Market Falling Today? Sensex Tanks 900 Points, Nifty Below 25,600

Indian equity markets turned negative after early gains, with the Sensex falling more than 900 points and the Nifty 50 slipping below the 25,600 level. Weak sentiment across sectors dragged the broader market lower.

Global Tensions Weigh On Sentiment

Investor mood has also been affected by geopolitical concerns. Reports of military action by the United States against Iran have increased uncertainty, which could influence crude oil prices, currencies, and global financial markets.

Broad-Based Selling Across Market Segments

Selling pressure was visible across large-, mid-, and small-cap stocks. Indices tracking mid- and small-cap companies declined, leading to a sharp drop in total market value of companies listed on the BSE.

High Valuations In Mid And Small Caps

Although earnings recovery has improved sentiment in smaller companies, valuation concerns remain. Mid- and small-cap stocks continue to trade at higher earnings multiples compared to large-cap stocks, making investors more selective in stock picking.

Sectoral Weakness And Heavyweight Losses

Most sectoral indices traded in the red, including auto, FMCG, media, and realty. Several major stocks such as Mahindra & Mahindra, Adani Enterprises, InterGlobe Aviation, and UltraTech Cement declined, adding pressure on the indices.

However, IT majors like Infosys and Tata Consultancy Services showed mild resilience.

Also Read: Best PSU Stocks in India in February 2026!

Rising Volatility Signals Investor Fear

The India Volatility Index (India VIX) jumped sharply, indicating growing uncertainty in the near term. Higher volatility generally leads investors to reduce risk exposure and trade cautiously.

Conclusion

Today’s market fall reflects a mix of global uncertainty, valuation worries, sector-wide weakness, and rising volatility. Unless sentiment improves and key index levels are reclaimed, markets may remain volatile in the short term.

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