Market Rout Extends: Sensex & Nifty Tumble for Fifth Straight Day

The Indian stock market’s losing streak extended to a fifth consecutive day on Thursday, as a combination of negative global and domestic factors triggered a broad-based sell-off, erasing significant investor wealth.

The bears tightened their grip on Dalal Street, pulling the benchmark indices to their lowest levels in recent sessions. At the closing bell on September 25, 2025, the BSE Sensex had plunged 555.95 points (0.68%) to settle at 81,159.68. Similarly, the NSE Nifty 50 index dropped 166.05 points (0.66%) to close below the crucial 25,000 mark at 24,890.85.

The market turmoil was not confined to the headline indices. The selling pressure was widespread, impacting the broader markets as well. The Nifty MidCap 100 index fell by 0.64%, and the Nifty SmallCap 100 index declined by 0.57%, indicating that negative sentiment was felt across the board. This relentless selling resulted in a massive erosion of investor wealth, with the total market capitalisation of BSE-listed firms plummeting by nearly ₹3 lakh crore in a single session.

What’s Spooking the Market?

Several factors contributed to the sustained downturn, creating a challenging environment for investors.

1. Weak Global Cues: Sentiment in the domestic market was heavily influenced by weakness in global equities. US markets closed lower on Wednesday amid concerns over stretched valuations and ahead of key inflation data. This cautious mood spilled over into Asian markets, setting a negative tone for Indian equities from the start of the day.

2. Persistent FII Outflows: Foreign Institutional Investors (FIIs) have continued their selling spree. According to exchange data, FIIs offloaded equities worth ₹2,425.75 crore on the previous day (Wednesday, September 24). This trend of consistent foreign fund outflows has been a significant drag on the market.

3. Domestic Concerns: On the home front, worries over potential changes to US visa rules have kept the IT sector under pressure. “Indian markets extended its losing streak for a fifth straight session as investors booked profits amid persistent FII outflows and uncertainty over US-India trade talks,” said Vinod Nair, Head of Research at Geojit Financial Services.

4. Sectoral Carnage: Barring the Nifty Metal index, which managed a marginal gain of 0.22%, all other sectoral indices ended the day with losses. The Nifty Realty index was the hardest hit, plunging 1.65%. Other major losers included Nifty IT (down 1.27%), Nifty Auto (down 0.92%), and Nifty Pharma (down 0.92%).

Among the Nifty 50 stocks, only a handful managed to stay afloat. Top gainers included BEL, Hero MotoCorp, and Hindalco. On the flip side, shares of Trent, PowerGrid, and Tata Motors were the top losers, shedding over 2.6% each.

What to Watch Next

With the Nifty 50 closing below the psychological level of 25,000, the market has entered a cautious zone. Investors should keep a close eye on the following:

• Global Market Trends: The direction of US markets and key economic data, such as inflation reports, will continue to influence sentiment.
• FII Activity: A reversal in the FII selling trend is crucial for the market to find a stable footing.
• Nifty’s Support Levels: The next crucial support for the Nifty 50 is seen around the 24,800 mark. A breach of this level could lead to further declines.
• Upcoming Economic Data: India’s H2FY26 borrowing plan and other domestic macroeconomic data expected at the end of the week will be closely watched.

For now, the market mood remains fragile. Investors are looking for a fresh positive trigger to break the losing streak. Until then, volatility is likely to remain high, and a cautious approach is advisable.

Disclaimer: This article is for informational purposes only and should not be considered investment advice. Please conduct your own research or consult with a financial advisor before making any investment decisions.