Sensex settles nearly 500 pts lower from day's high, Nifty below 25,050: Profit booking, other key reasons behind decline

Sensex, Nifty see profit booking in October 8 trade. 

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26 Aug, 2025 12:21

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The benchmark equity indices gave up early gains and settled lower on Wednesday, snapping the four-day rally following selling in bank, auto and realty shares.

In a volatile session, the Sensex declined 153.09 points or 0.19 percent to settle at 81,773.66. During the day, it hit a high of 82,257.74 and a low of 81,646.08, gyrating 611.66 points. The Nifty dropped 62.15 points or 0.25 percent to 25,046.15.

Tata Motors, Mahindra & Mahindra, Bharat Electronics, UltraTech Cement, Trent, Sun Pharma, Power Grid and Reliance Industries were the major laggards. However, Titan, Infosys, Tata Consultancy Services, HCL Tech and Tech Mahindra were among the biggest gainers.

Key factors behind the reversal

1) Profit booking: Selling pressure emerged in key sectors such as banking, auto, FMCG and realty as investors took profits after recent gains. Nifty Bank index also snapped a six-session gaining streak as investors booked profits at elevated levels.

2) Global cues: Weak trends in global markets weighed on sentiment. In Asia, Hong Kong’s Hang Seng index was down nearly 1 percent, while US markets ended lower on Tuesday.

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3) Crude oil prices: Global benchmark Brent crude rose 0.78 percent to USD 65.96 a barrel. A rise in crude prices typically raises concerns over inflation, dampening investor mood.

4) Rise in Volatility index: The India VIX, which measures market volatility, climbed over 3 percent to 10.36. A rise in volatility index indicates higher uncertainty among traders, often leading to cautious trading and short-term corrections.

Analyst view

Anand James, Chief Market Strategist at Geojit Financial Services, said, "Having tested 25,200, volatility emerged on anticipated lines. A hammer candlestick pattern formed yesterday reflects our concerns. As maintained earlier, we expect sideways moves or a slip towards 25,030–25,000, unless there is a direct rise above 25,200. We do not expect an outright reversal though."

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.