Sensex Plunges 400 Points as Nifty Drops Below 22,500 Led by a 3% Fall in Infosys

Indian equity benchmarks started the week on a cautious and negative note as persistent global macro headwinds and heavy selling in index heavyweight Infosys dragged key indices sharply lower at the opening bell.

The 30-share BSE Sensex opened over 400 points lower, sliding towards the 72,844 mark in early trade, while the broader NSE Nifty 50 dropped more than 200 points to breach the psychologically crucial 22,500 support level.

Infosys and Tech Counters Under Pressure

Information technology shares bore the brunt of early selling, led by software services giant Infosys, which declined by 3% right after market opening. The sharp drop in the IT bellwether exerted significant downward pressure on the benchmark indices, reflecting broader investor anxiety regarding global discretionary tech spending and elevated bond yields overseas.

Conversely, private banking major HDFC Bank provided a measure of downside cushion, with its shares trading up by 2% to resist the broader market slide.

Broader Markets Face Severe Selling

The weakness was not confined to frontline indices alone, as midcap and smallcap segments witnessed heavier profit booking.

Key Benchmark and Sectoral Movements:

• The BSE Sensex fell over 400 points at open, hovering near early lows of 72,844.
• The NSE Nifty 50 surrendered the 22,500 milestone under selling pressure.
• The Nifty Smallcap 100 and Nifty Midcap 100 indices slumped by up to 3% in initial deals.
• Sectoral indices such as Nifty Metal and Nifty Consumer Durables lost around 3%, while Nifty Auto, Nifty Realty, and Nifty PSU Bank slipped roughly 2% each.
• Market breadth remained deeply tilted toward the bears, with over 2,700 declining stocks outnumbering around 400 advancing counters on the NSE.

Key Factors Driving the Opening Plunge

Market participants pointed to multiple converging headwinds unsettling Dalal Street:

• Firm Crude Oil Prices: Elevated international crude prices have revived concerns over India's imported inflation, trade balance, and input cost pressures for manufacturing sectors.
• Foreign Fund Outflows: Continued selling by Foreign Institutional Investors (FIIs) has kept liquidity conditions tight and restricted upside traction on benchmark counters.
• Valuation Discomfort in Broader Equities: Analysts noted that high liquidity-driven valuations in small-cap and mid-cap spaces remain sensitive to adverse macro triggers, prompting extended profit-taking.

With the Nifty trading below the key 22,500 mark, technical analysts caution that short-term volatility could stay heightened until stability returns to global commodity prices and foreign institutional flows.