Stock Market Close, June 23, 2026: Nifty, Sensex Crash After Recent Rally as Investors Book Profits Amid Broad-based Selloff

Mumbai, June 23: Indian benchmark indices tumbled on Tuesday, with the Sensex plunging nearly 900 points and the Nifty closing below the 23,850 mark, as investors booked profits after the rally seen in recent sessions.  

The broad-based selloff which overshadowed positive cues from softer crude oil prices and easing geopolitical tensions was also aided by weak business data. India’s private sector activity moderated to a three-month low in June, as growth in both services and manufacturing lost momentum. Services activity expanded at its slowest pace in 17 months, while manufacturing growth eased to a three-month low. 

The Sensex dropped 893.39 points, or 1.16%, to close at 76,200.68, while the Nifty 50 declined 278.80 points, or 1.16%, to settle at 23,824.10. Market breadth remained decisively negative, with 2,678 stocks declining against 1,420 advancing, highlighting widespread selling pressure across sectors. 

Metal, IT Stocks Bear the Brunt 

Sensex plunged after seeing a strong rally across recent sessions. Source: BSE 

Metal stocks emerged as the biggest laggards of the session as investors reacted to weakness in global commodity markets. Information technology shares also came under pressure amid concerns that the U.S. central bank hiking interest rates later this year could weigh on global technology spending and valuations. Also Accenture Plc recently announcing a weak outlook did not help. 

Banking stocks added to the benchmark drag, while consumer durable and PSU bank counters also witnessed notable selling. The weakness was reflected across the broader market, with midcap and smallcap stocks ending lower alongside the frontline indices. 

Global Risk-Off Mood Weighs 

Nifty 50 crashed as investors booked profits and weak business data sped up the selloff. Source: NSE 

Domestic equities mirrored weakness across Asian markets, where sentiment deteriorated sharply after South Korea’s KOSPI suffered a steep decline. Investors globally also reassessed the outlook for U.S. monetary policy after stronger economic data fuelled expectations that the Federal Reserve could hike rates later this year. 

The cautious global backdrop prompted profit-booking in Indian equities, which had rallied strongly over recent sessions. Prior to Tuesday’s decline, the Sensex and Nifty had risen in six of the last seven trading sessions, supported by easing oil prices and improving risk sentiment. 

Pharma Defies Market Weakness 

Pharmaceutical stocks bucked the broader market trend and finished in positive territory, emerging as one of the few pockets of strength during the session. Investors gravitated toward defensive sectors as risk appetite weakened across cyclical and export-oriented segments. Also, the sector rose on buzz that the U.S. drug regulator had reached out to Indian pharmaceutical companies regarding supplies of a critical cancer-treatment drug. Investors viewed the development as potentially supportive for domestic drugmakers, boosting sentiment across the sector. 

Meanwhile, the India VIX, often referred to as the market’s fear gauge, surged more than 8%, signalling a sharp increase in investor anxiety and expectations of heightened volatility in the near term. 

Outlook 

Analysts said the selloff appeared to be driven by a combination of global risk aversion and profit-booking following the recent rally. While lower crude oil prices continue to provide a supportive macroeconomic backdrop for India, near-term market direction is likely to depend on global interest-rate expectations, foreign fund flows and developments in overseas markets. 

For now, Tuesday’s sharp correction suggests investors are turning more cautious after a strong run-up, with volatility expected to remain elevated in the coming sessions. 

Source

• NSE
• BSE