Markets End Sharply Lower As FII Selling Intensifies; Sensex Crashes 961 Points

Markets registered steep declines on Friday as heavy foreign institutional investor (FII) selling and fragile global signals weighed on sentiment.

At the closing bell, the Sensex plunged 961 points, or 1.17 per cent, to settle at 81,287. The Nifty dropped 317.90 points, or 1.25 per cent, ending at 25,178.

The indices remained under sustained pressure throughout the session.

Broader markets mirrored the downturn. The Nifty Midcap 100 slipped 1.10 per cent. The NSE Smallcap 100 also retreated 1.10 per cent.

The Nifty Next50 declined 1.30 per cent. Market breadth remained negative. About 1,515 stocks advanced, while nearly 2,300 counters declined. Bank Nifty fell 1.08 per cent.

Most sectoral indices closed in the red. Realty led losses, sliding 2.26 per cent.

Auto stocks fell 1.86 per cent. Metal and FMCG each declined 1.69 per cent. In contrast, IT, media and consumer durables posted relative resilience.

Volatility strengthened. The India VIX hovered around 2.6 per cent, signalling heightened caution among traders.

Participants, however, adopted defensive strategies as benchmarks breached key technical levels.

Analysts attributed the weakness partly to stalled US–Iran nuclear negotiations.

The absence of diplomatic progress intensified fears of escalating Middle East tensions.

Artificial intelligence-related uncertainties also persisted. However, selective buying supported domestic IT counters after sharp corrections exceeding 20 per cent in February.

The rupee traded marginally lower. It depreciated 0.02 per cent to 90.98 against the US dollar.

Technically, the Nifty decisively broke below the crucial 25,350 support mark. It moved through a significant open interest zone and nearly filled the gap created during the earlier US-India tariff-driven rally.

Analysts interpreted this move as a shift in short-term sentiment.

Market participants noted that IT shares lent limited stability despite structural headwinds.

Elevated volatility, geopolitical risks and cautious positioning ahead of key macroeconomic indicators kept investors risk-averse.

Experts believe near-term direction will depend on global developments, foreign capital flows and forthcoming economic data releases.

Also Read: Markets Open Lower Despite IT Rally; Sensex Down 346 Points, Nifty Slips