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The market tumbled unexpectedly today, with the Sensex sinking 350 points and the Nifty slipping below 26,100. But what triggered this sudden shift in sentiment and is it hinting at a deeper change investors haven’t spotted yet?
Markets tumble as Sensex drops 350 points and Nifty slips under 26,100
New Delhi: The Indian equity market witnessed a sharp decline on Tuesday, December 2, as benchmark indices gave up early gains and extended losses through the session.
Weak global cues, sustained foreign investor selling, and pressure across banking and financial counters dragged the market lower, pushing the Sensex down nearly 350 points and pulling the Nifty below the psychologically important 26,100 mark.
The BSE Sensex opened on a cautious note, reflecting overnight weakness in global markets, and quickly slipped into negative territory. Selling intensified in the first half as heavyweights in the banking, IT, and energy sectors came under pressure.
By mid-session, the index had fallen over 320 points and eventually closed with a loss of around 350 points, settling just above the 85,200 level.
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The NSE Nifty 50 mirrored the weakness, shedding close to 100 points during the day. After failing to hold on to the 26,200 zone, the index slipped steadily below 26,100, indicating a continuation of its short-term consolidation phase. Market breadth also remained weak, with more stocks declining than advancing across major sectors.
Markets tumble as Sensex drops 350 points
Analysts suggest that the correction was largely driven by profit-booking after the market’s strong rally last week, when both indices had touched fresh all-time highs. With valuations stretched in several sectors, traders opted to lock in gains as global sentiment remained subdued.
A key drag came from private banking and financial services stocks, which saw sustained selling pressure. Heavyweights such as HDFC Bank, ICICI Bank, and Kotak Mahindra Bank contributed significantly to the benchmarks’ decline. Weakness in the rupee, which fell to a fresh low against the US dollar, further weighed on investor confidence, especially as foreign institutional investors continued their selling streak in recent sessions.
Global markets also provided little support. Concerns surrounding interest rate expectations, mixed economic data from the US, and geopolitical tensions kept global equities under pressure, influencing domestic sentiment.
Despite the weakness, pockets of resilience emerged in select sectors such as FMCG, pharmaceuticals, and infrastructure, which saw mild buying at lower levels. This helped limit deeper losses and contributed to a partial recovery toward the end of the session.
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Market experts believe that the Nifty may find immediate support near the 26,000-26,050 range. Sustained trade above this zone could maintain the broader uptrend, while a decisive breach may trigger further downside. On the higher side, a move above 26,300 would be required for momentum to shift back in favour of the bulls.
As investors look ahead, the market is expected to remain range-bound and volatile, with key triggers including global cues, currency movement, and institutional flows. With the recent rally cooling off, the coming sessions may continue to see bouts of consolidation before a clearer direction emerges.
Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Stock market investments are subject to market risks, and readers should conduct their own research before making any investment decisions.
