₹7 Lakh Crore Wiped Out As Markets Reverse Sharply: Sensex Drops Over 1200 Points, Nifty Logs Steepest Fall in Last Two Weeks

Investors lost nearly ₹7 lakh crore in a single session as the total market capitalisation of BSE-listed companies slipped to about ₹465 lakh crore from ₹472 lakh crore in the previous session.

Markets had opened higher, tracking positive global cues, but optimism faded steadily through the day. Selling intensified in the final trading hour, dragging indices close to their day’s lows.

At the closing bell, the Nifty 50 fell 365 points or 1.41% to 25,454.35, while the Sensex plunged 1,236.11 points or 1.48% to 82,498.14.

Banking & Financial Stocks Lead The Fall

The sell-off was led by banking and financial counters. Nifty Bank breached the crucial 61,000 mark and closed at 60,739.35, down 1.32%.

Among major losers, Kotak Mahindra Bank, Axis Bank, and IndusInd Bank declined by up to 2.33%. Financial heavyweights Shriram Finance and Bajaj Finserv also slipped up to 2%.

Key Factors That Dragged Markets Down:

US Rate Cut Uncertainty Triggers Risk-Off Mood

Market sentiment weakened after minutes from the January 27-28 meeting of the Federal Reserve showed policymakers divided on the rate outlook.

Some officials warned borrowing costs might rise again if inflation remains high, while others preferred keeping rates unchanged. A section indicated that rate cuts may not be appropriate until disinflation clearly resumes.

Higher US yields typically attract capital into American assets, resulting in foreign portfolio outflows from emerging markets like India. This pressures the rupee, tightens liquidity and weighs on equities.

Rising Crude Oil Prices Hurt Sentiment

Oil prices moved higher amid tensions involving the US and Iran. Brent crude rose 24 cents to $70.59 per barrel, while WTI crude gained 28 cents to $65.47.

Both benchmarks had surged more than 4% in the previous session, marking their highest settlement since January 30 due to fears of supply disruptions.

For India, rising crude prices increase import bills, fuel inflation, and compress margins in aviation, paint and transport sectors, thereby weighing on equities.

Geopolitical Tensions Add Pressure

Global risk appetite weakened after reports of a US military buildup in the Middle East, including warships, fighter jets and refuelling aircraft, raising fears of a prolonged campaign against Iran if negotiations fail.

On the Russia-Ukraine front, talks in Geneva failed to produce a breakthrough, with Ukrainian President Volodymyr Zelenskyy expressing dissatisfaction despite Washington calling the discussions meaningful. Persistent geopolitical uncertainty dampened investor confidence globally.

Profit Booking After Recent Rally

Markets had rallied around 1.4% over the previous three sessions, supported by December-quarter earnings. Investors used higher levels to book profits, triggering a pullback.

Participation remained stock-specific, suggesting selective capital deployment and a possibility of near-term consolidation unless the index decisively crosses 26,000.

Expiry-Day Volatility Accelerates Fall

Volatility spiked further due to the February 19 derivatives expiry. The India VIX rose 10% to 13.46, amplifying intraday declines and accelerating sector-wide selling pressure.

Market Breadth

As of February 19, 2026, the market breadth was in favour of declining stocks. Out of 3,249 stocks traded on the NSE, 831 advanced, 2,308 declined, and 110 remained unchanged. 

A total of 76 stocks touched their 52-week highs, while 118 hit their 52-week lows. Additionally, 84 stocks were locked in their upper circuits, whereas 63 stocks were locked in lower circuits.