Sensex Plummets 1,400 pts, Nifty50 Trades Near 25,400 - Key Triggers Behind This Crash

India's stock market witnessed a sharp sell-off across sectors on Thursday, February 19. While Sensex, and Nifty 50 opened higher, both were trading in red after sell-off witnessed in auto, FMCG, metals, realty and financial stocks.

The Sensex opened 0.28%, higher at 83,969.82, while the Nifty 50 surged 0.21%, to open at 25,873.35 level.

However, the market turned bearish with Sensex nosedived nearly 2%, and Nifty 50 declined below 25,500 level. 

While Nifty Smallcap 100 index declined 0.6% and the Nifty Midcap 100 indices plummeted 1%, Nifty IT was also dragged down with several IT stocks in red, including Persistent which declined 4%.

Nifty Realty, Nifty PSU Banks, Nifty FMCG, Nifty Auto and Nifty Media were also trading in red.

The bloodbath witnessed in today's trading session wiped out over Rs 7 lakh crore from the market capitalization of BSE-listed firms.

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Meanwhile, Asian markets were trading higher with South Korea’s Kospi index hitting a fresh record high.

On Wall Street overnight, all three major indices of the US stock market ended higher, lifted by gains in technology stocks.

Key Triggers Behind Stock Market Fall

The domestic benchmark indices extended losses to 1% despite strong global cues on Thursday. Investors opted for profit booking after three straight consecutive sessions of rally.

While there are several positive macro triggers such as the Budget 2026 announcement, and the India-US deal prevail, the share market is experiencing stock-specific reactions amid escalating concerns over a potential US-Iran escalation. On the other hand, oil prices extended gains after surged in the last session, as investors factored in potential supply disruptions. 

Meanwhile, the US Federal Reserve's January meeting indicated that officials remain split on the future interest rate course as policymakers mull over keep the choice of rate hikes.