India's stock market has been under severe pressure since the morning. By 12:30 PM on Tuesday, the Sensex had already fallen 1000 points. The Nifty 50 index's condition is similar. At the same time, Nifty dropped 279 points and is hovering around the strong support zone of 25400.
Around 12:45 PM on February 24, the Sensex fell by about 1100 points. Nifty dropped by more than 300 points. Bank Nifty fell by 250 points. Mid-cap and small-cap indices also witnessed significant declines.
Why are the indices falling?
Multiple factors are causing the decline in indices today, according to several reports.
US Tariffs
Last week, the US Supreme Court rejected Trump's tariffs. However, the Trump administration is not backing down from the idea of imposing new tariffs. The stock market has been affected by concerns that Trump might impose tariffs in a more aggressive manner. According to Bloomberg's report, the Trump administration believes it will arrange new tariffs under the Trade Expansion Act. In this context, investors are keeping an eye on Trump's moves.
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US-Iran Relations
The political situation in West Asia is quite volatile. Investors are watching which direction the tensions between the US and Iran will take. There is virtually a war-like situation now. The US has also issued warnings of military attacks against Iran. Meanwhile, discussions are ongoing between the two countries regarding nuclear agreements.
Dollar Price Increase
When the dollar's value increases, it has a negative impact on Emerging Markets (such as India's market). This is because when the dollar's price rises, more foreign currency flows out of the country. Continuous increases in the dollar's price could also impact foreign investment in India's share market.
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Crude Oil Price Increase
On Tuesday, crude oil prices increased by 1 per cent in the international market. Crude oil prices per barrel have reached their highest level in the past 6 months. Such price increases have hurt the market.
Selling Pressure on IT Stocks
Selling pressure on IT company stocks is gradually increasing. Such pressure in the tech sector is creating instability in the entire stock market. The IT index has already fallen by at least 20 per cent in February alone. There is uncertainty about which direction the IT industry will move due to AI's impact.
{News Ei Samay does not provide investment advice anywhere. Investment and trading in the share market or any field involve risk. Proper study and expert advice are recommended beforehand. This news is published for educational and awareness purposes.}
