21 hours ago
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Stock market crash: Indian equity markets endured a steep selloff in early trade on Thursday, following the US imposition of a 25 per cent tariff on most Indian imports. The BSE Sensex tumbled nearly 800 points, while the NSE Nifty 50 plunged below 24,650, dragging broader segments lower.
By 11:44 AM, the Sensex had pared some losses to 81,332, down 149 points (0.18 per cent). Nifty was trading at 24,806, down nearly 49 points (0.20 per cent). Mid-cap and small-cap stocks felt the brunt, both indices slumped as much as 2 per cent before modest recovery later in the session.
The carnage was swift and severe: in the first 10 minutes alone, investors lost over Rs 3 lakh crore in market value. The total market cap of BSE-listed firms slid from over Rs 452 lakh crore to nearly Rs 449 lakh crore compared to the previous session.
Why Is the Indian Stock Market Falling? Five Key Drivers
1) US Tariffs on Indian Imports
President Trump’s tariff announcement—effective August 1—triggered fears of a prolonged trade war. Analysts warn that sustained tariffs could dent GDP growth, weaken the rupee, and curb foreign investment.
2) Fed Signals No Rate Cut
The US Federal Reserve left its benchmark rate unchanged at 4.25–4.50 per cent, without any clear indication of imminent rate cuts. This dour outlook heightened risk-off sentiment globally.
3) FPI Selling Surge
Foreign Portfolio Investors (FPIs) have offloaded over Rs 42,000 crore of Indian equities in July alone, driven by stretched valuations, a weak rupee, and muted earnings momentum.
4) Weak Corporate Earnings
So far, Q1FY26 earnings have painted a mixed picture. Sectors like IT have seen demand softness, while banking margins remain under pressure from monetary policy. Analysts expect recovery only in the second half of the year.
5) Technical Breakdown of Nifty
Nifty broke below the 24,650 support zone and edged closer to 24,600. Technical analysts caution that a breach of 24,600 could open the door to downside targets at 24,450 or even 24,250.
Market Snapshot
Sensex Low: 80,695 (down by 1 per cent)
Nifty Low: 24,635 (down by one 1 per cent)
MidCap & SmallCap Indices: Declined around 2 per cent at session trough
Despite a partial recovery later in the morning, the mood remains cautious. Markets await corporate earnings updates alongside macro-led developments, including progress on trade talks and any Fed guidance shifts.
English (US) ·