Sharp sell-off across D-Street: Sensex plunges 876 points, Nifty breaks 22,900

The Sensex plunged 876 points, while the Nifty fell 257 points to close below 22,900.

Weak global cues and concerns over quarterly earnings kept investors on the sidelines, while losses in heavyweight banking stocks added to the pressure.

Let’s take a look at the key factors that shaped today’s trading session –

Private Banks took the biggest hit

Private banks were among the biggest drags after their September-quarter results raised concerns over margins and future earnings. Axis Bank, HDFC Bank and YES Bank fell by up to 5%. The selling pulled the Nifty Private Bank index down nearly 2% and the Nifty Bank index lower by around 1%.

IT stocks also weighed on the benchmarks. Most sectoral indices ended in the red, with financials, FMCG and IT among the key laggards. The weakness spread to broader markets, with both midcap and smallcap indices losing more than 1%.

PSU banks buck the trend

Public-sector banks stood out in an otherwise weak session. The PSU Bank index rose 2.50%, supported by buying in State Bank of India, Punjab National Bank, Union Bank of India and Bank of Baroda.

Global concerns and crude oil in focus

Investors remained cautious ahead of more corporate earnings and amid uncertainty in global markets.

Brent crude hovered around $107–108 per barrel, keeping concerns over India’s import bill and inflation in focus. Foreign investor flows and corporate guidance are also likely to influence market direction in the coming sessions.

Vinod Nair, Head of Research, Geojit Investment, said “Indian equities came under renewed selling pressure, reversing the recent recovery as weak global cues and selling in private banks and IT stocks weighed on investor sentiment. Global markets remained cautious ahead of a busy week of corporate earnings. Private banks remained under pressure following quarterly earnings and concerns over margin trends, while PSU banks bucked the broader weakness, supported by expectations of relatively resilient margins and asset quality.”

He further added, “Crude oil prices eased after the US waived key sanctions linked to Russia, raising expectations of increased Russian fuel supplies to the global market. However, crude prices remained elevated, with geopolitical tensions continuing to influence the outlook. The Nifty slipped below the psychologically important 23,000 level, while broader market breadth remained weak, reflecting cautious investor sentiment amid earnings-related volatility and uncertain global cues.”

Key sectoral losers

Among the sectoral indices, PSU Bank stocks are the top gainers, rising 1.67%, followed by oil and gas exploration stocks, which are up 0.79%. Aviation stocks have gained 0.43%, while water management stocks are up 0.32% and battery storage stocks have risen 0.28%.

Rupee weakens

The rupee weakened marginally by around 4 paise to 94.91 against the US dollar as crude oil prices climbed towards $110 a barrel. Higher oil prices raised concerns over India’s import bill, putting pressure on the domestic currency.

What investors need to watch ahead

Investors will track upcoming quarterly results, especially from banks and IT companies, for clues on earnings growth and profit margins. Global market trends, crude oil prices and foreign fund flows will also remain important.