“The support level at 22500-22400 appears to be crucial for the Nifty50 index in the near future,” says Osho Krishnan of Angel One. (AI image)
Stock market crash today: BSE Sensex and Nifty50, the Indian equity benchmark indices, crashed in trade on Friday. While BSE Sensex went below 73,600, Nifty50 was below 22,250. At 10:01 AM, BSE Sensex was trading at 73,597.70, down 1,015 points or 1.36%. Nifty50 was at 22,227.90, down 317 points or 1.41%.
Sensex and Nifty were affected by significant declines in banking and IT sector stocks. Investors remained cautious ahead of crucial GDP figures and responded to recent statements by US President Donald Trump regarding tariffs.
The total market value of BSE-listed firms reduced by Rs 5.8 lakh crore, reaching Rs 387.3 lakh crore, according to an ET report.
Early trading witnessed Nifty IT stocks declining up to 4%, influenced by the overnight downturn in US markets following Nvidia’s poor performance.
Additionally, the Nifty Auto index showed a decline exceeding 2%, with Nifty Bank, Metal, Pharma, Consumer Durables, and Oil & Gas indices showing decreases between 1-2%.
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Why stock market is falling today
The main factors influencing today’s market decline are:
1) Apprehension regarding GDP data
Economic growth concerns, declining earnings momentum, Trump’s trade policies, and continuous foreign investor selling have resulted in benchmarks falling 14% from their peak levels in late September.
Investors are attentively monitoring the December quarter GDP figures, scheduled for release post-market hours on Friday. According to a Reuters survey of economists, India’s economy likely showed improvement during this period.
2) Trade Policy Uncertainty
Trump’s recent announcement shifted the implementation of 25% duties on Canadian and Mexican imports to March 4, advancing from the initial April 2 timeline. He also declared a 10% levy on Chinese imports whilst maintaining his stance on 25% tariffs for European Union shipments. These fluctuating trade decisions have led to increased market instability.
3) IT Sector Faces Downturn
Asian markets experienced a decline on Friday, with MSCI Asia ex-Japan dropping 1.21%, following Wall Street’s downward trend after Nvidia’s significant decrease. The technology sector experienced additional pressure as Nvidia’s earnings report sparked negative investor reaction, leading to widespread selling of AI-related stocks, including other “Magnificent Seven” companies. The Nifty IT index fell 3.2%, with notable declines in Persistent Systems, Tech Mahindra, and Mphasis, showing losses up to 4.5%.
4) Dollar Strengthens
The US dollar maintained positions near multi-week peaks against primary currencies amidst growing trade war concerns. The U.S. dollar index reached 107.35 on Friday against six major currencies. This strengthening creates challenges for emerging markets like India, increasing the cost of foreign investments and prompting equity capital outflows.
