Nifty breaks below 26,000; midcaps log worst fall in four months

The stock market fell sharply on Monday, with losses deepening across mid- and small-cap stocks as risk sentiment weakened and selling pressure intensified through the session. Benchmark indices closed at the day’s lows, while the broader market saw its steepest single-day decline in four months.

The NSE Nifty 50 dropped 226 points to finish at 25,961, slipping below the 26,000 mark as 46 of its 50 constituents ended in the red.

"The market experienced a broad-based decline, slipping below the 26,000 mark as investors turned cautious ahead of this week’s FED policy decision. Despite robust domestic growth figures and the RBI’s recent rate cut, short-term sentiment remains overshadowed by global monetary policy concerns, persistent FII outflows, and currency depreciation. Volatility was further amplified by a surge in Japanese bond yields to multi-year highs, sparking fears of a potential unwinding of the yen carry trade," Vinod Nair, Head of Research, Geojit Investments Limited, said.

The BSE Sensex fell 610 points to 85,103. Market capitalisation of BSE-listed companies shrank by nearly ₹7 lakh crore, reflecting broad-based liquidation across sectors.

The midcap index tumbled 1,107 points to 59,488, its biggest fall since July, as the market breadth sharply favoured declines. All major sectoral indices ended lower, with defence and realty stocks posting the heaviest losses.

Among midcaps, Bharat Dynamics, Fertilisers and Chemicals Travancore (FACT), Godrej Properties and Housing & Urban Development Corporation (HUDCO) dropped 5–6%. InterGlobe Aviation, operator of IndiGo, slumped 9%—its steepest decline in four years—after disruptions in operations triggered investor jitters.

Fino Payments Bank slid more than 12% despite receiving the Reserve Bank of India’s approval to transition into a small finance bank. Kaynes Technology extended its losing streak, falling over 30% in four sessions, while Eternal saw a 3% fall after 0.5% equity changed hands in block deals.

Niva Bupa gained 3% following a strong business update for November. Biocon slipped 3% after announcing the merger of its biologics unit in a $5.5 billion deal. Life insurance stocks weakened after the release of November industry data, with ICICI Prudential Life shedding 2%.

Ashoka Buildcon rose 2% after winning an additional order worth ₹447 crore from the Brihanmumbai Municipal Corporation.

The NSE’s advance-decline ratio stood at a weak 1:6, underscoring the breadth of the market-wide sell-off.