Stock Market Crash: These are the reasons why Sensex closed down by 1048 points and Nifty by 336 points, Rs 6 lakh crore lost.: Friday the 13th's impact? Stock market in turmoil, investors suffer ₹8 lakh crore loss, Sensex falls 1,000 points due to selling of IT stocks.

News Topical, Digital Desk : For the second consecutive day, the stock market witnessed clear selling pressure, closing at its lowest level of the day. IT stocks were the hardest hit, pushing the Nifty below the crucial 25,500 level. Mid-cap stocks also remained weak, and the market breadth overall favored the downside. Most sectors closed in the red, with metal and capital market stocks being the biggest losers.

The domestic stock market remained weak for the second consecutive trading session. The Sensex fell 1,048 points to close at 82,627, while the Nifty fell 336 points to 25,471. Most worryingly, the market closed at its lowest level of the day, clearly indicating weak sentiment.

44 out of 50 Nifty stocks closed in the red.
Hindalco Industries Ltd,
Hindustan Unilever Ltd,
Eternal Ltd,
Oil and Natural Gas Corporation Ltd , and
Adani Enterprises Ltd
were among the top Nifty losers in today's trading.

Sectorally, no sector remained in the green. All sectoral indices closed in the red. The most pressure was seen in metal and capital market stocks. This clearly indicates that investors remained risk-averse, and profit-booking was prevalent across the board.

IT stocks did see some relief after a sharp decline during the day. The Nifty IT index recovered by more than 4 percent from its intra-day low. Persistent Systems Ltd was one of the few stocks in the same sector that managed to close in the green. However, overall pressure on IT stocks weighed heavily on the market.

In the midcap segment, Muthoot Finance Ltd emerged as the biggest loser. Even though the company had increased its AUM guidance, the stock witnessed sharp profit booking and closed under pressure.

Shares of Alkem Laboratories Ltd, associated with the pharma sector, recorded a massive fall of around 8 percent. The company's India business grew by 5.5 percent in the third quarter, but missing the double digit growth target for H2FY26 weakened investor confidence.

Hindalco's stock was the biggest loser in today's trade. After the third quarter results were weaker than expected, the stock fell by around 6 percent and became the top loser on Nifty. And the advance-decline ratio on NSE was 1:4, meaning for every one rising stock, four stocks closed in the red.

The biggest blow came from the IT sector. IT stocks saw selling for the third consecutive day. Investors fear that artificial intelligence-based automation could directly impact this sector's labor-intensive business model. This concern weakened overall market sentiment.

All 16 major sectors were in the red in today's trading. In particular, the metal sector fell by nearly 3 percent. Hindalco Industries shares fell by nearly 6 percent after news of a 45 percent decline in quarterly profit was reported. This impact was also felt by other metal stocks.

The decline was not limited to large stocks. Pressure was clearly visible in the broader market as well. The Nifty Smallcap 100 fell by nearly 2 percent, and the Nifty Midcap 100 by approximately 1.8 percent. Market breadth was clearly negative. While approximately 948 stocks advanced, 2,561 closed in the red.

What were the major reasons for the market fall?

1. Continuous selling in the IT sector:
The IT index has fallen by approximately 11.4 percent this week and has declined by approximately 16.6 percent so far in 2026. Heavyweight stocks like Tata Consultancy Services, HCL Technologies, and Tech Mahindra also remained under pressure. Ajit Mishra (Religare Broking) says that the sharp correction in IT stocks has put market bulls on the back foot for now.

2. Weak global cues:
Asian markets also witnessed weakness. Meanwhile, in the US, the Nasdaq fell by more than 2 percent due to pressure on tech stocks. According to Devarsh Vakil (HDFC Securities), uncertainty related to artificial intelligence has further intensified the selling in tech stocks.

3. Sharp rise in volatility:
The India VIX, or fear index, rose by more than 10 percent to 12.86. This clearly indicates that uncertainty and risk aversion are increasing among investors.
According to VK Vijayakumar (Geojit Investments Limited), the market is currently in a turbulent phase. Selling in the IT sector, considered India's biggest profit machine, is weighing heavily on the overall market.

4. Rupee Weakness:
The rupee fell 8 paise to 90.69 against the dollar. The strong US dollar and declining domestic stock markets also put pressure on the rupee.

What are the indications for Nifty ahead?
According to Anand James, the Nifty may remain under pressure for the time being. The 25,500 level is currently considered a key support. If the decline continues, the next major support could be near 24,571. Meanwhile, a break above 25,750 could provide some relief, and crossing the 25,830 to 25,900 zone could spark positive market signals.

This week, the stock market sentiment remained largely negative. Both the Sensex and Nifty ended the week with a decline of around 1%. The biggest pressure on the market came from the IT sector. Selling in IT stocks was so severe that the IT index lost nearly 8% for the week. This is considered the biggest weekly decline in the past year. Five of the top six Nifty losers were IT companies—Infosys, HCL Technologies, Tata Consultancy Services, Wipro, and Tech Mahindra. This week alone, the IT sector lost nearly ₹3 lakh crore in market capitalization.