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Sensex Tanks 600 Points, Nifty Slips Below 24,700: What’s Behind the Market Fall?

pooja bisht
28 Jul 2025 08:34 AM

Indian stock markets witnessed a sharp fall on Monday, July 28, 2025, with the Sensex plunging over 600 points and the Nifty sliding below the 24,700 mark. The sudden dip in market sentiment has left investors worried, as key factors like foreign institutional investor (FII) selling, rising volatility (VIX), and global market weakness came into play.

What Triggered the Fall?

Several reasons contributed to today’s market decline:

  • FII Selling Pressure: Foreign investors have been offloading shares in Indian markets, possibly due to global economic uncertainties and profit booking at high valuations.

  • Rising India VIX: The India Volatility Index (VIX), which indicates market fear, has spiked, signaling growing nervousness among traders.

  • Kotak Mahindra Bank Drag: Heavy selling in Kotak Mahindra Bank shares significantly impacted the indices. The stock saw notable weakness amid sectoral underperformance in banking.

  • Weak Global Cues: Asian markets traded lower, reflecting concerns over slower growth in China and global inflationary pressures, which had a ripple effect on Indian equities.

Market Highlights

  • Sensex fell over 600 points intraday.

  • Nifty 50 slipped below the psychological level of 24,700.

  • Banking and financial stocks were among the worst hit.

  • Broader markets also showed weakness, with declines across small-cap and mid-cap indices.

What Should Investors Do?

While such corrections are part of market cycles, investors are advised to:

  • Stay calm and avoid panic selling.

  • Focus on quality stocks with strong fundamentals.

  • Keep an eye on global developments and upcoming RBI monetary policy updates.

Final Thoughts

Today’s market dip reflects a mix of domestic concerns and global pressures. While volatility may persist in the short term, long-term investors should treat this as an opportunity to reassess their portfolios and invest wisely.

Reference from:- https://www.moneycontrol.com/news/business/markets/sensex-down-300-pts-from-day-s-high-nifty-below-24-800-fii-selling-among-key-factors-behind-market-fall-13336580.html