Fear is back on the street, and it brought the bears along for the ride. Despite the rate cut, the Nifty has surrendered the 26,000 mark, closing deep in the red.

The Scoreboard is messy. The Nifty 50 has cracked, shedding over 225 points to close at 25,960. The Bank Nifty took an even harder hit, with PSU banks plunging nearly three percent. But the real number you need to worry about is the India VIX. It spiked ten percent today, signaling that volatility is officially back. The breadth was brutal, with only 3 stocks advancing on the Nifty while 47 declined.

So, why the sell-off? It’s a classic case of sell on news. The market had already priced in the RBI rate cut, and now, profit booking at record highs has triggered a broad-based slide. The intense selling in mid-caps and small-caps suggests that retail panic is setting in, likely worsened by the lack of any support from Foreign Institutional Investors.

In terms of sector rotation, there was nowhere to hide. Every single sectoral index ended in the red. Nifty IT fell the least, acting as a defensive shelter, but even that was down a quarter of a percent. On the flip side, Nifty Realty crashed three and a half percent, and PSU Banks were right behind them. Money is not rotating; it is simply leaving the table.

The stock of the day is undoubtedly InterGlobe Aviation, or IndiGo. The stock crashed nearly eight percent to hit a seven-month low. The catalyst is an operational meltdown. We are talking about over one thousand cancelled flights due to pilot rostering issues and new regulatory norms. With the DGCA sending a show-cause notice and passengers demanding refunds, investors are pricing in a massive financial hit.

Quick global check. European markets are mixed, with the German DAX in the green but the UK FTSE slightly lower. However, US Futures are trading in the green, with the Nasdaq up nearly point two percent, which suggests that this panic might be isolated to India for now.

For tomorrow, the technical setup is precarious. The Nifty has broken the psychological 26,000 mark and failed to reclaim it. Resistance is now firm at 26,200. Support lies in the critical zone of 25,700 to 25,900. If we break that, we could see a much deeper correction.

My closing thought is simple. The easy money has been made. With the VIX rising and FIIs selling, capital preservation is now your primary job. Do not try to catch falling knives until the volatility settles.

That is your post-market wrap. Stay disciplined, and I will catch you tomorrow morning.