Sensex fell 700.29 points (0.82%) to 84,871.56, and Nifty dropped 180 points (0.69%) to 25,998.95, with Nifty Bank down 1.13%. Over 2,100 stocks on BSE declined, while only 1,195 advanced.
The fall is driven by fears that SEBI may introduce new rules in futures and options (F&O), impacting trading volumes by 30-40%. Key stocks like Hero MotoCorp, Bharat Electronics, and Reliance fell 2-3%. Meanwhile, Chinese markets surged, raising concerns that foreign portfolio investments (FPI) may shift from India to China due to more attractive valuations.