Sensex, Nifty 50 Fall 1%; Mid, Small-Caps Bleed More — 10 Key Highlights from Indian Stock Market Today

Mumbai, June 12, 2025 — Indian equity benchmarks took a sharp turn lower on Thursday, with the Sensex and Nifty 50 both declining over 1% amid global uncertainty, sustained FII selling, and weak cues from Asian peers. Mid- and small-cap stocks were hit harder, witnessing deeper cuts as broader market sentiment soured. Here are the top 10 key highlights from today’s market session.

1. Sensex and Nifty 50 Slide Over 1%

The BSE Sensex ended the day down 753 points or 1.01% at 73,800, while the NSE Nifty 50 lost 232 points or 1.02% to close at 22,460. Both indices posted their worst single-day fall in nearly a month, breaking key support levels and eroding investor wealth.

2. Broader Markets Under Deeper Pressure

While headline indices fell modestly, the pain was more pronounced in the broader markets. The Nifty Midcap 100 tanked 1.7%, and the Nifty Smallcap 100 tumbled 2.3%. Market breadth heavily favored declines, with over 2,000 stocks closing in the red on the NSE.

“The valuation premium of mid and small-caps had reached unsustainable levels. Today’s correction reflects mean reversion rather than panic selling,” said Ankit Shah, Head of Equities at Monarch Investments.

3. Banking and Financials Lead the Decline

Banking stocks were at the center of the sell-off. Nifty Bank fell nearly 1.5% to close below 47,700, led by declines in HDFC Bank, ICICI Bank, and Axis Bank. NBFC stocks such as Bajaj Finance and Muthoot Finance also bore the brunt of the correction.

4. IT and FMCG Offer Some Support

On a relatively brighter note, select IT and FMCG stocks showed resilience. Infosys and TCS bucked the broader trend with marginal gains, while Hindustan Unilever and ITC provided some cushioning to the benchmarks.

5. Foreign Investors Turn Aggressive Sellers

Foreign institutional investors (FIIs) were net sellers for the fifth consecutive session, offloading over ₹2,800 crore worth of Indian equities today, as per provisional data from NSE. Persistent outflows, especially from large-caps and financials, continue to weigh on sentiment.

“We are seeing a clear rotation out of emerging markets into safer assets, given rising geopolitical concerns and U.S. Fed uncertainty,” said Ruchita Patel, Senior Market Strategist at Quantum Securities.

6. Weak Global Cues Drag Sentiment

Asian markets were broadly negative, with the Nikkei 225 falling 1.6% and Hang Seng down 2.3%, after soft Chinese inflation data raised fresh concerns about global demand. European futures also pointed lower amid political instability in France and cautious sentiment ahead of the U.S. Fed’s next rate guidance.

7. Rupee Falls Further, Nears 84.10/USD

The Indian rupee depreciated 17 paise to settle at 84.08 per U.S. dollar amid stronger greenback demand from importers and rising crude prices. This added further pressure to import-heavy sectors such as autos and oil marketing companies (OMCs).

8. Volatility Index (India VIX) Spikes 7%

The India VIX surged 7.2% to 14.92, indicating rising investor anxiety and expectations of further short-term volatility. This marked the highest level since the Lok Sabha election result day, reflecting increased demand for hedging strategies.

9. Sectoral Pain: Realty, PSU Banks, and Metals Worst Hit

• Nifty Realty: Down 3.1%, with heavy losses in DLF, Godrej Properties, and Oberoi Realty.

• Nifty PSU Bank: Down 2.8%, with Union Bank and PNB among the worst performers.

• Nifty Metal: Down 2.4%, dragged by Tata Steel, JSW Steel, and Hindalco.

10. Technical View: Nifty Faces Resistance at 22,700

According to analysts, the Nifty 50 now faces stiff resistance at the 22,700 mark. On the downside, immediate support lies at 22,300, a breach of which may trigger further selling.

“The breakdown below 22,500 indicates short-term bearishness. Traders should avoid leveraged positions until the index stabilizes,” advised Gaurav Bissa, Derivatives Analyst at LKP Securities.

Investor Outlook: Time to Be Selective

Despite the correction, market analysts maintain that long-term fundamentals remain intact. However, they advise investors to be selective and focus on quality large-cap names with strong balance sheets.

“Volatility may persist over the next few weeks due to global headwinds. Use this phase to accumulate quality stocks in a staggered manner,” said Ramesh Damani, veteran investor and market commentator.

Today's broad-based market correction signals caution but not crisis. With macroeconomic fundamentals still stable and earnings season ahead, market participants are advised to watch global cues and FII flows closely. Volatility may persist, but corrections also present long-term buying opportunities for patient investors.