Sensex plunges over 300 points as market skids for third straight session

Benchmark indices extended their losing streak for the third consecutive session on Monday, with the BSE Sensex dropping 313.70 points, or 0.37 per cent, to close at 84,587.01, while the NSE Nifty fell 74.70 points, or 0.29 per cent, to settle at 25,884.80. The market witnessed sharp volatility on monthly expiry day, with investors awaiting clarity on a possible rate cut in the upcoming Federal Reserve meeting and progress on the Indo-US trade deal.

Despite opening higher—Sensex at 85,008.93 and Nifty at 25,998.50—the indices struggled to sustain gains as selling pressure intensified near key resistance levels. The Nifty repeatedly failed to cross the crucial 26,000-mark, encountering supply at higher levels before retreating to close near the day’s lows.

“The index formed a bearish candlestick for the third consecutive session, again attempting to cross 59,200 but encountering selling pressure at that level. RSI has now drifted into a bearish crossover on the daily chart, adding to the cautionary tone,” said Vatsal Bhuva, Technical Analyst at LKP Securities.

Among sectoral indices, Nifty Realty and PSU Banks emerged as top performers, surging 1.62 per cent and 1.44 per cent, respectively, supported by strong revival in home loan demand and rising market share for PSU banks. However, Nifty Media and IT dragged the market lower, declining between 0.6 per cent and 0.9 per cent.

The broader market showed resilience amid the benchmark weakness. Nifty Midcap 100 gained 0.36 per cent to 60,298.00, adding 216.40 points, while Nifty Smallcap 100 rose 0.19 per cent to 17,730.30, up 33.80 points, after witnessing declines in previous sessions. The advance-decline ratio remained balanced with 2,095 stocks advancing against 2,076 declining on BSE, where 4,330 stocks were traded.

On the Nifty50, Bharat Electronics led the gainers, climbing 1.58 per cent to ₹410.20, followed by Hindalco which rose 1.44 per cent to ₹785.80, SBI up 1.33 per cent at ₹983.50, Shriram Finance gaining 1.26 per cent to ₹838.60 and SBI Life advancing 0.80 per cent to ₹2,031.00. On the losing side, Adani Enterprises tumbled 2.91 per cent to ₹2,329.40, Tata Motors Passenger Vehicles declined 1.59 per cent to ₹352.60, Trent fell 1.49 per cent to ₹4,246.50, Infosys dropped 1.15 per cent to ₹1,530.20 and Power Grid shed 1.14 per cent to ₹272.65.

“The domestic market witnessed sharp volatility on monthly expiry day, driven by a weakening INR and continued FII outflows. Caution prevailed as investors awaited clarity on a possible rate cut in the upcoming FOMC meeting,” said Vinod Nair, Head of Research at Geojit Investments Limited. He added, “Selling pressure is visible near the 26,000 level, though downside appears limited given strong domestic fundamentals, including a solid earnings outlook for H2.”

Banking stocks displayed mixed performance, with Bank Nifty declining marginally by 15.05 points, or 0.03 per cent, to close at 58,820.30. The index moved into a controlled consolidation phase after its recent strong run-up, with support remaining firm at 58,600–58,500 levels.

Shrikant Chouhan, Head Equity Research at Kotak Securities, noted, “After a roller coaster activity the Nifty ended 99 points lower, while the Sensex was down by 359 points. We believe that the 26,000-26,050/85,000-85,200 zone remains a key resistance area for traders. As long as the market trades below this level, weak sentiment is likely to continue.”

Technical indicators painted a cautious picture. “The RSI slipping back below 60 signals a pause in bullish momentum after the recent rally. Meanwhile, the ADX remains flat, indicating a lack of trend strength and absence of directional conviction in the market,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.

The rupee remained under pressure against the dollar, contributing to market weakness. In commodities, gold traded positively with gains of ₹1,100 at ₹1,25,000, supported by a rise in Comex gold to $4,130. “Prices are expected to remain volatile within a range of ₹1,23,500–₹1,26,500,” said Jateen Trivedi, VP Research Analyst at LKP Securities.

Market breadth remained neutral with 82 stocks hitting 52-week highs against 284 touching 52-week lows. Nine stocks each were locked in upper and lower circuits.

Looking ahead, Nilesh Jain of Centrum Broking stated, “A clear move above 26,000 is now essential to spark short covering and pave the way towards 26,200. The broader trend remains bullish, and a buy-on-dip strategy is likely to work as long as the Nifty holds above its 50-DMA, currently positioned near the 25,490 level.” Investors will closely watch the US inflation data due Wednesday, which could provide insight into the Federal Reserve’s December policy stance and influence near-term market direction.

Published on November 25, 2025