Stock Market Crash Today: Sensex Plunges 501 Points, Nifty Dives Below 25,000 — Top 5 Reasons Behind the Fall
Stock Market Today: Sensex crashes 501 pts, Nifty breaks 25,000. Explore the 5 key reasons behind the fall — global cues, FII selling, IT-banking slump, crude spike, and profit booking
Mumbai, July 18, 2025 — The Indian stock market witnessed a sharp sell-off on Thursday as both benchmark indices — the Sensex and the Nifty 50 — nosedived amid global jitters and domestic uncertainty. The Sensex closed 501 points lower at 81,426, while the Nifty 50 fell 162 points to settle below the critical 25,000 mark, ending the day at 24,943.
This is the third straight session of decline, with investor wealth eroding by over ₹2.3 lakh crore in just one trading day. Here’s a breakdown of the top 5 key reasons why the markets tumbled today, which sectors were hit hardest, and what analysts are predicting next.
| Index | Closing Level | Change (Points) | % Change |
|---|---|---|---|
| Sensex | 81,426 | -501 | -0.61% |
| Nifty 50 | 24,943 | -162 | -0.65% |
| Nifty Bank | 54,130 | -310 | -0.57% |
| India VIX | 13.74 | +4.6% | Volatility up |
Investor Wealth Wiped Out: ₹2.3 lakh crore market cap erosion as per BSE data
Weakness in global equity markets — especially the US — triggered a domino effect in Indian indices.
- Dow Jones fell 432 points overnight
- Nasdaq tech stocks slid amid renewed inflation fears
- Asian markets like Hang Seng (-1.2%), Nikkei (-0.7%) also dropped
Why it matters: Global investors are in risk-off mode after US Fed minutes signalled a longer high-rate regime, spooking tech-heavy markets.
Foreign Institutional Investors (FIIs) dumped Indian equities worth ₹3,427 crore today, reversing the inflow trend of the past two weeks.
- Strong US dollar index (104.9) triggered outflows
- Risk-off sentiment drove FIIs toward safer assets like US Treasury bonds
- Rising geopolitical tensions in East Asia also a factor
Analyst View: “FII pullout shows caution returning before the US earnings season and Fed meeting,” said Pratik Kothari, CIO at FlexInvest Capital.
Two heavyweight sectors — Information Technology (IT) and Banking — dragged the indices lower:
- Infosys (-2.1%), TCS (-1.7%), HCLTech (-1.9%) fell after Accenture downgraded FY26 guidance
- HDFC Bank (-1.4%), ICICI Bank (-0.9%), Kotak Mahindra Bank (-2.2%) declined over rising NPA concerns
- RBI’s latest Financial Stability Report hinted at stress in mid-size NBFCs
🧾 Sector-wise Impact:
- Nifty IT: -1.85%
- Nifty Bank: -0.57%
- Nifty Realty: -1.1%
Crude oil prices surged to $89.70 per barrel, the highest in 3 months, after Middle East tensions escalated and OPEC+ hinted at tighter supply.
- Brent crude up 3.6% in 24 hours
- Rupee weakened to ₹84.11/USD due to import cost pressure
- Domestic fuel price revision expected soon
⚠️ Impact: Higher oil prices increase logistics and input costs across sectors — a negative trigger for inflation-sensitive stocks.
After touching record highs earlier this month, markets are now witnessing a healthy technical correction.
- Nifty breached 24,950 support zone
- RSI and MACD indicators suggested overbought levels
- Traders booked profits in auto, FMCG, and PSU sectors
📈 Volatility Index India VIX surged 4.6% to 13.74, indicating elevated nervousness among investors.
| Stock | Sector | % Drop |
|---|---|---|
| Kotak Bank | Banking | -2.2% |
| HCL Tech | IT | -1.9% |
| Hindalco | Metals | -2.1% |
| Hero MotoCorp | Auto | -1.8% |
| SBI Life | Insurance | -2.3% |
Despite the broad sell-off, a few stocks ended in green:
- Coal India (+1.7%) — on strong June output numbers
- NTPC (+0.9%) — following power demand surge
- Adani Ports (+0.6%) — due to fresh FII interest
Market experts believe this correction is short-term and healthy.“This pullback was expected after the stellar rally to 25,200. Long-term investors should use dips to accumulate quality large-caps,” said Meera Shah, Senior Analyst at PhillipCapital.
Focus on defensive sectors: pharma, power, FMCG
Avoid bottom-fishing in overvalued midcaps
Watch FII behavior, crude prices, and global bond yields closely
Q1 Earnings Season: Reliance, Infosys, and HDFC Bank results due soon
US Fed Meeting: July 30, 2025
Monsoon Data & Crop Outlook to affect agri and FMCG stocks
RBI Policy Review: August 8, 2025
Mutual Fund SIPs remain steady, with ₹17,800 crore in monthly inflows
Retail DII support prevented deeper crash today
India VIX rising indicates growing caution among traders
