Investors lose Rs 3 lakh crore! Sensex falls 592 pts, Nifty below 25,900; more pain ahead?

Domestic equity benchmarks Sensex and Nifty closed lower on Thursday, mirroring the weakness in global markets after the US Federal Reserve’s rate cut. Investors also stayed on the sidelines, awaiting fresh cues from the ongoing US-China trade talks.

The combined market capitalisation of BSE-listed companies slipped to around Rs 472 lakh crore on Thursday, down from Rs 475 lakh crore in the previous session, eroding over Rs 3 lakh crore in investor wealth.

At the closing bell, the Sensex declined 592.67 points, or 0.70 per cent, to close at 84,404.46, while the Nifty50 fell 176.05 points, or 0.68 per cent, to settle at 25,877.85.

Bharti Airtel emerged as the top loser on Sensex, falling 1.54 per cent to Rs 2,068. Power Grid followed with a 1.35 per cent decline, while Tech Mahindra, Infosys, Bajaj Finance and Reliance Industries fell 1.33 per cent, 1.18 per cent, 1.04 per cent, and 1.04 per cent, respectively.

Five stocks, namely, HDFC Bank, Reliance Industries, Bharti Airtel, ICICI Bank and Infosys, contributed heavily to the Sensex’s fall.

Among sectoral indices, the BSE IT index settled 0.52 per cent lower at 35,166.48, while the BSE Bankex index fell 0.72 per cent to close at 65,298.12.

Overall, out of 4,322 actively traded stocks on the BSE, 1,883 ended higher, while 2,279 declined, and 160 closed unchanged. During the session, 147 stocks scaled their 52-week highs, whereas 56 slipped to 52-week lows. Meanwhile, 202 scrips were locked in their upper circuits and 173 in lower circuits. 

Vinod Nair, Head of Research at Geojit Financial Services, said the US Federal Reserve’s 25-basis-point rate cut came in line with expectations. 

“However, the market consolidated after Powell indicated that this might be the last rate cut of 2025, tempering hopes of further monetary easing. The resulting strength in the U.S. dollar contributed to a risk-off sentiment across emerging markets, including India. Domestically, mixed Q2 earnings and the F&O expiry led to market volatility. Meanwhile, investors remain watchful of the Trump–Xi trade negotiations, as the prevailing uncertainty around the discussions continues to keep market sentiment cautious," Nair said.

Rupak De, Senior Technical Analyst at LKP Securities, said bears remained at the helm as Nifty bulls stayed on the sidelines following a slightly less dovish Fed commentary. 

“Though the short-term trend remains up, with the index trading well above its short-term moving average, a minor extension of the correction cannot be ruled out. On Friday, if Nifty sustains below 25,900–25,950, it may test 25,800 or lower. On the other hand, a decisive move above 25,950 could provide much-needed strength to the bulls," De said.