Sensex settles 250 pts lower from day’s high, Nifty ends near 26,200: Four key reasons behind market decline

Stock market today: Sensex, Nifty see profit booking. 

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26 Aug, 2025 12:21

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The equity benchmark indices gave up early gains on Friday as investors booked profits at higher levels, dragging the market off its intraday highs.

The Sensex 13.71 points or 0.016 percent at 85,706.67, while the broader Nifty finished at 26,202.95, down 12.60 points or 0.048 percent.

Shriram Finance, HDFC Life Insurance Company and SBI Life Insurance Company were among the major laggards in the Nifty50 pack, declining up to 2 percent, while Adani Enterprises and Mahindra & Mahindra were among the top gainers, rising up to 2 percent. Market breadth also turned negative as about 1738 shares advanced, 1918 shares declined and 161 shares unchanged.

Key reasons behind market decline 

1) FII selling: Foreign Institutional Investors sold equities worth Rs 1,255.20 crore on Thursday. Persistent FII outflows often weigh on domestic equities.

2) Crude rises: Brent crude edged up 0.36 percent to USD 63.57 per barrel. Higher crude prices tend to pressure domestic markets as they raise input costs for companies and widen the country’s import bill.

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3) Profit booking: IT, realty and oil & gas stocks slipped into the red as traders chose to lock in gains after the recent upmove.

4) Rupee declines: The rupee weakened by 7 paise to 89.43 against the US dollar in early trade on Friday amid a firm greenback and elevated crude prices. Forex dealers said the currency was also weighed down by foreign fund withdrawals, while investors stayed cautious ahead of the release of July–September GDP data later in the day.

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