Sensex Crashes 600 Points, Nifty Breaks 26,000 as Heavy FII Selling Hits Market

Market Slumps as FII Selling, Spike in Volatility Drag Indices Lower.

Benchmark indices ended sharply lower on Monday as persistent foreign institutional investor (FII) selling and a surge in market volatility dented sentiment on Dalal Street.

The S&P BSE Sensex tumbled 609.68 points to close at 85,102.69, while the NSE Nifty50 fell 225.90 points to finish at 25,960.55. Both indices reversed early gains and slipped deeper into the red as broad-based selling picked up in the second half of trade.

Weakness was visible across the broader market as well, with mid-cap and small-cap indices closing lower, signalling a cautious undertone beyond frontline stocks.

Across sectors, banking, financial services, IT, and metals bore the brunt of the sell-off, dragging benchmarks lower. Heavyweight counters saw sustained profit-booking, overshadowing limited buying interest in defensive pockets.

Volatility escalated sharply through the session, reflecting nervousness among traders ahead of major global and domestic triggers. Analysts noted that persistent FII outflows have become a key pressure point for equities in recent days.

Market sentiment remains fragile as participants track movements in global bond yields, crude oil prices, and currency trends for cues. With volatility on the rise and overseas flows turning risk-averse, analysts expect a cautious near-term outlook, with stock-specific moves likely to dominate.