The Sensex and Nifty 50 fell sharply on Tuesday morning as investors sold shares across sectors. Weak global cues and profit booking triggered a broad market decline.
The Sensex dropped over 1,350 points to an intraday low of 81,934. The Nifty 50 fell 1.5 per cent to 25,327. Mid- and small-cap indices slipped more than 1 per cent each. Investors lost over Rs. 6 lakh crore as total BSE market capitalisation fell to Rs 463 lakh crore from Rs 469 lakh crore, Live Mint reported.
Here are five key reasons behind the fall:
US tariff uncertainty
The US Supreme Court struck down some Trump-era tariffs. But reports say the Trump administration may use Section 232 of the Trade Expansion Act to reimpose duties. President Donald Trump has warned of higher tariffs on nations opposing the move. Markets are also watching his State of the Union address, which is scheduled for today.
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US-Iran tensions
Protests in Iran and the US's warning of possible military action have raised geopolitical risks. Fresh nuclear talks are scheduled later this week. Investors are cautious ahead of developments.
IT stocks under pressure
The Nifty IT index fell nearly 4 per cent intraday and is down around 20 per cent this month. Concerns over AI disruptions and high US interest rates are hurting sentiment. Global tech weakness is adding to the pressure.
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Rising crude oil prices
Brent crude climbed above $72 per barrel, near a six-month high. Higher oil prices are negative for India, a major importer. They can increase inflation and widen the trade deficit.
Stronger US Dollar
The dollar index rose and is nearing the 98 mark. A stronger dollar often leads to foreign fund outflows from emerging markets like India. Though FIIs have bought equities this month, high valuations and weak earnings growth remain concerns, Live Mint said.
Markets remain volatile as global and domestic risks continue to weigh on sentiment.
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