Indian Stock Market Plunges for Fifth Consecutive Session Amid Global Weakness and Tax Concerns; Sensex Drops Over 1,000 Points

The Indian stock market extended its losing streak to a fifth consecutive session on Tuesday, influenced by weak global cues and anxieties over potential increases in financial securities tax rates due to the New Income Tax Bill. Margin calls on funded positions further contributed to the downturn. The Nifty 50 index closed 309 points lower at 23,071, while the BSE Sensex plummeted over 1,000 points to finish at 76,293. The Bank Nifty index also saw a significant drop, ending 577 points down at 49,403. (Source: Intraday stocks for today under ₹100, Date: Current Date) Mid-cap and small-cap indices underperformed, with the Nifty Mid-cap 100 plunging more than 3% to its lowest since June 4, 2024, and the Nifty Small-cap 100 Index plummeting 3.5% to its lowest since January 28. Market breadth significantly deteriorated, with the advance-decline ratio on the BSE hitting 0.15, the lowest since the election result day on June 4, 2024. All sectoral indices closed in the red, with Nifty Realty, Media, and Auto sectors experiencing the most substantial declines. Experts attribute the market's recent downturn to various factors, including uncertainties surrounding US trade policies and concerns about domestic economic growth. Vinod Nair, Head of Research at Geojit Financial Services, noted that continuous selling by Foreign Portfolio Investors (FPIs) has dampened market sentiment, with FPIs having withdrawn ₹88,139 crore from the stock markets in 2025 so far. Despite some recovery in the Indian Rupee due to RBI intervention, it remains under pressure, potentially leading to continued market volatility. Nair suggests that mid- and small-cap stocks are particularly vulnerable due to demand-related concerns and high valuations. The Indian stock market's sharp decline reflects broader global economic uncertainties and domestic policy concerns. Investors are closely monitoring market trends and awaiting further cues to gauge future market movements. Immediate actions may include portfolio adjustments and a cautious approach to new investments as the market navigates these turbulent conditions.