Sensex Drops 300 Points, Nifty Slides Below 25,100 Amid Ongoing Profit Booking

Benchmark indices fell sharply on Wednesday morning as profit booking continued after recent gains, sparking volatility across Dalal Street.

At 9:22 am, the S&P BSE Sensex dropped 309 points to 81,792.86, while the NSE Nifty50 slipped 100 points to 25,069.45. Broader market indices also saw early losses amid persistent selling pressure.

Among Nifty50 stocks, Tata Motors, Hero MotoCorp, Tech Mahindra, Wipro, and Bajaj Auto were the top laggards. On the upside, Trent, SBI, Maruti, Asian Paints, and ONGC emerged as notable gainers.

Market outlook and expert views
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, pointed to concerns over elevated global asset prices, echoing US Fed Chair Jerome Powell’s recent remarks on inflation risks and challenging monetary policies. He noted that while Nifty remains about 4% below its September 2024 peak, valuations are still above long-term averages. Smallcap valuations, he added, remain stretched and could face further corrections, advising investors to focus on growth prospects and reasonable valuations during market dips.

Anand James, Chief Market Strategist at Geojit Investments, offered a technical perspective: “The 25,000 level on Nifty continues to act as support, while resistance near 25,278 limits upside momentum. Until a close above 25,330 is achieved, weak momentum suggests the index may trend between 24,880 and 24,800.”

Prashanth Tapse, Senior VP (Research) at Mehta Equities, highlighted fresh domestic and global headwinds: “US Fed Chair Jerome Powell’s warnings on stagflation have increased market jitters ahead of Friday’s US PCE inflation data. Domestically, sentiment is impacted by President Trump’s proposed 50% tariff hike on Indian exports and a one-time $100,000 H-1B visa fee for Indian professionals. The rupee’s record fall to 88.5 against the dollar has triggered heavy FII outflows, with net sales of Rs 17,034 crore in September.”