Why Did the Sensex Plunge Over 900 Points? Insights into Market Trends

The Indian stock market faced a sharp decline on Friday, with the Sensex dropping 961 points and the Nifty falling below 25,200. This downturn was driven by fresh foreign fund outflows and rising geopolitical tensions, particularly concerning US-Iran nuclear talks. Major stocks like Sun Pharma and Bharti Airtel saw significant losses, while a few, including HCL Tech, managed to gain. The overall market sentiment remains cautious as investors react to global uncertainties. Explore the detailed analysis of market trends and sector performances in this article.

By Narendra Chaudhary Feb 27, 2026, 18:10 IST

Market Overview

Mumbai: The benchmark Sensex experienced a significant drop of 961 points, while the broader Nifty index fell below the 25,200 mark on Friday. This decline was attributed to fresh outflows from foreign investors and a lackluster global market environment amid escalating geopolitical tensions.

The 30-share BSE Sensex closed down by 961.42 points, or 1.17%, finishing at 81,287.19. At one point during the trading session, it had plummeted by 1,089.46 points, reaching a low of 81,159.15.

Similarly, the 50-share NSE Nifty dropped by 317.90 points, or 1.25%, to close at 25,178.65.

Experts noted that the stagnation in US-Iran nuclear negotiations has heightened fears of increased tensions in the Middle East.

Among the stocks in the Sensex, major losers included Sun Pharma, Bharti Airtel, Bajaj Finserv, InterGlobe Aviation, Mahindra & Mahindra, and Maruti.

On the other hand, HCL Tech, Trent, Infosys, and Eternal were among the few gainers.

Data from exchanges revealed that Foreign Institutional Investors (FIIs) sold equities worth ₹3,465.99 crore on Thursday, while Domestic Institutional Investors (DIIs) purchased stocks worth ₹5,031.57 crore.

"The Indian markets are in a phase of consolidation, influenced by weak global indicators and rising geopolitical risks, leading to a more cautious investor sentiment. The stagnation in US-Iran nuclear discussions has raised concerns about potential escalations in the Middle East, while ongoing uncertainties related to AI are driving safe-haven investments," stated Vinod Nair, Head of Research at Geojit Investments Limited.

Sector-wise, real estate saw a decline of 2.25%, followed by telecommunications at 1.83%, automobiles at 1.81%, metals at 1.57%, commodities at 1.56%, FMCG at 1.52%, and financial services at 1.50%.

The IT sector and BSE Focused IT were the only sectors to record gains.

The BSE smallcap index fell by 0.84%, while the midcap index decreased by 0.71%.

Overall, 2,528 stocks declined, 1,660 advanced, and 181 remained unchanged on the BSE.

For the week, the BSE benchmark dropped by 1,527.52 points, or 1.84%, while the Nifty fell by 392.6 points, or 1.53%.

In Asian markets, South Korea's Kospi fell by 1%, while Japan's Nikkei 225, Shanghai's SSE Composite index, and Hong Kong's Hang Seng index closed positively.

European markets displayed mixed trends.

The US market mostly declined on Thursday.

"Weak global indicators and rising geopolitical uncertainties following inconclusive US-Iran discussions have dampened investor confidence, leading to widespread profit-taking across sectors such as auto, FMCG, and pharmaceuticals after recent gains. The lack of new domestic catalysts further intensified the downward trend, particularly in the final trading hour," commented Hariprasad K, Research Analyst and Founder of Livelong Wealth.

Brent Crude, the global oil benchmark, rose by 1.26% to reach USD 71.64 per barrel.

On Thursday, the Sensex saw a slight dip of 27.46 points, or 0.03%, closing at 82,248.61, while the Nifty managed a minor gain of 14.05 points, or 0.06%, finishing at 25,496.55.