Why Is Indian Stock Market Falling Today? Nifty Sinks Below 26K, Sensex Crashes 730 Pts, Mid-Small Caps Bleed

Why Indian Stock Market Is Falling Today: The Indian stock market saw a sharp sell-off during Monday's intraday trade driven by poor performance in the broad market indices, especially midcap and smallcap stocks. Additionally, Nifty PSU Banks and Nifty Realty are also witnessing sharp selling pressure.

Nifty 50 was down 237 points and was trading below 26,000 mark, whereas BSE Sensex crashed nearly 660 points at 1:32 pm on Monday. The sharp decline in the Indian stock market today coincided with weak performance of its Asian stock market peers including Nikkei 225, Hang Seng, etc. Sensex tumbled further by 729 points to 84,983 at 1:56 pm.

Midcap, Smallcap Stocks See Massive Drop

The midcap and smallcap stocks saw a sharp decline during the Monday's intraday trade. Nifty Midcap 50 was down 1.89%, Nifty Midcap 100 was down 2%, Nifty SmallCap was down 2.58%, Nifty Smallcap 50 was down around 2.62%.

Meanwhile, real estate and PSU banks were among the top losers during the day. Nifty PSU Bank was down around 2.6% with Punjab National Bank, Canara Bank, Bank India, Indian Bank, Union Bank, were among the top laggards.

Nifty Realty was down 3.8% during the trading session with Godrej Properties, Prestige, Anant Raj, DLF, etc among the top index losers.

Why Is Indian Stock Market Falling Today?

The sharp decline in the Nifty and Sensex performance on Monday is led by heavy foreign institutional investors (FII) selling and sharp volatility during the session. As per the NSE websitem India Vix shot over 6% during Monday's intraday session.

"The​‍​‌‍​‍‌​‍​‌‍​‍‌ fall in the Sensex and Nifty today is mainly due to a nervous worldwide atmosphere. There is uncertainty about when the rate cuts will happen and that the Asian markets are weak. Following the strong rally of recent days, valuations had become a bit stretched, which made the indices more vulnerable to negative cues. The force of the fall in the midcap and smallcap segments is greater, these areas having been driven up more quickly and usually reacting sharply during times of liquidity tightening or ​‍​‌‍​‍‌​‍​‌‍​‍‌profit-booking," explained Siddharth Maurya, Founder & Managing Director, Vibhavangal Anukulakara Pvt. Ltd.

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