What is the reason for stock market crash in india today? This is the main question arising today. Investors are very cautious for the same. Lets reveal the reason behind it.
The Indian stock market faced a significant crash as the BSE Sensex dropped over 1,200 points and NSE Nifty fell by 320 points, which is followed by US President Donald Trump’s trade tariff announcements.
Market capitalization decreased by ₹7 lakh crore. Sensex crashes over 1,200 points which is a huge fall. Both benchmark indices, the Sensex and the Nifty 50, declined over 1 per cent each. The 30-pack Sensex declined 1,235 points, or 1.60 per cent, to close at 75,838.36, while its NSE counterpart, Nifty 50, lost 320 points, or 1.37 per cent, to end at 23,024.65.
The top losers in the Sensex index are shares of Zomato, NTPC, Adani Ports, ICICI Bank, SBI and Reliance Industries. The two stocks who faced gain in indexes are UltraTech Cement and HCL Tech while shares of Hindustan Unilever ended flat.
The main reasons behind this fall are :
- Trump’s Tariff Threats: Today US President Donald Trump highlighted about imposing 100% tariffs on BRICS nations (including India) that reduce their reliability on the US dollar for trade caused investor uncertainty. This can lead to harm in trade relations in India and cause stress in market.
- Japan’s Bank Potential Rate Hike: Global markets are worried about the possibility of the Bank of Japan raising interest rates that will affect the borrowing cost , which adds to market up-downs.
- Weak Corporate Earnings: Companies mixed earnings like Dixon Technologies, Zomato, and Oberoi Realty resulting in creating concerns about corporate performance leading to sharp declines in their stock prices. Shares of Dixon Technologies plunged 14 percent after reporting a sequential decline in consolidated net profit. Zomato tumbled 9 percent after its Q3 results showed Blinkit’s aggressive expansion eating into profitability.
- Foreign Institutional Investor (FII) Outflows: Continued selling by FIIs (who have sold over ₹50,000 crore in Indian equities) added downward pressure on the market.
- Uncertainty Ahead of Union Budget: Investors are also worried because of India’s Union Budget unaware of policy announcements, which is contributing to volatility of market.
Ruchit Jain, Vice President at Motilal Oswal Financial Services, said, “The India VIX has risen over 5% today indicating increased uncertainty ahead of the Union Budget. FIIs continue to be sellers in the Indian market where they have sold equities worth over 50000 crore which remains the prime reason why we are witnessing markets tumbling post a pullback move.”
The broader markets also felt the brunt of heavy sell-off with the Nifty Smallcap 100 index falling 2.27 percent, and the Midcap100 declining 2.20 percent.
Conclusion : In the Indian context, such crashes can result from a combination of global economic turmoil, domestic financial instability, or a sudden shift in investor sentiment.
The main reason behind the fall of the stock market in India today is a mix of global economic concerns and local factors. Investors are worried about global inflation and interest rates, which affect the global economy. On the local front, there might be concerns about corporate earnings, economic growth, or government policies that are creating uncertainty. As a result, many investors are selling their stocks, causing the market to drop.
