Indian equity markets faced a significant sell-off today, February 27, 2026, as the BSE Sensex plummeted 961 points to close at 81,287.19. The NSE Nifty 50 also suffered a sharp decline, sliding 318 points to settle at 25,178.65. This downward move represents a drop of over 1.2% for both benchmark indices. The correction was fueled by fresh foreign fund outflows and mounting geopolitical risks. Investor confidence wavered as U.S.–Iran nuclear talks stalled, raising fears of escalated tensions in the Middle East. Additionally, uncertainty surrounding AI-sector valuations in the U.S. triggered a global "risk-off" sentiment, dragging down Asian and European peers. Foreign Institutional Investors (FIIs) remained in selling mode, offloading equities worth 3,465 crore in the latest session. However, the impact was partially cushioned by Domestic Institutional Investors (DIIs), who showed resilience by purchasing stocks worth 5,031 crore. This domestic support remains a critical anchor for Indian markets during global turbulence. Despite the market volatility, India’s fundamental economic indicators remain robust. The latest government data shows that the economy grew at a better-than-expected 7.8% in the third quarter of the current fiscal year. This performance has led to an upward revision of the full-year GDP growth projection for 2025-26 to 7.6%. The manufacturing and services sectors have emerged as the primary engines of this resilience, both recording growth rates above 9%. While the broader market cap saw a erosion of nearly 5 lakh crore today, the upbeat GDP signals suggest a solid domestic foundation that could support a recovery once global headwinds subside. Sectoral performance was largely negative, with heavy selling observed in the Auto, Banking, and Realty spaces. Major laggards included Sun Pharma, Mahindra & Mahindra, and Bharti Airtel. Conversely, the IT sector provided a rare bright spot, with stocks like HCL Tech and Infosys ending in the green as investors rotated into defensive plays. Volatility, as measured by the India VIX, remains around the 13.06 level, indicating that while there is pressure, there is no immediate panic. Market participants are now closely watching the 25,100–25,200 support zone for the Nifty, as technical indicators suggest the index is entering a critical consolidation phase.