The Indian stock market experienced a notable rally during the week leading up to August 21, 2025, with benchmark indices Sensex and Nifty50 recording gains for six consecutive trading sessions. The Sensex climbed from around 81,534 points on August 19 to surpass 82,000 points by August 21, marking an increase of approximately 2.19% over six sessions. Similarly, the Nifty50 index rose from just below 25,000 to over 25,083 points, gaining about 2.43%. This upward momentum was supported by strong performances in sectors such as IT, realty, FMCG, and Pharma. However, on August 22, the market reversed sharply as both foreign institutional investors (FIIs) and domestic institutional investors (DIIs) engaged in heavy selling. The Sensex fell by 693.86 points (0.85%) to 81,306.85, and the Nifty50 dropped 213.65 points (0.85%) to 24,870.10. Mid-cap and small-cap indices also declined. FIIs sold equities worth ₹11,801.70 crore on August 22 alone, contributing to a total FII equity sell-off of ₹25,564 crore in August and ₹1,57,440 crore year-to-date. DIIs also recorded net selling of ₹329.25 crore on the same day. The market downturn ended a five-day rally that had seen the Nifty reclaim the 25,000 mark after nearly a month. The retreat reflected a synchronized exit by institutional investors, dampening the previous optimism in the Indian equity markets.