Stock market crash: Sensex plunged over 700 points and Nifty lost nearly 300 points in early trade.
The stock market opened in the red on Monday, with Sensex plunging over 700 points and Nifty losing nearly 300 points in early trade.
The sharp decline comes despite the recent Budget announcements, as global factors and foreign investor activity continue to weigh on market sentiment.
All the sectoral indices were trading in red other than Nifty consumer durables given the tax relief provided by the Finance Minister in her recent budget speech.
By 10 AM, the S&P BSE Sensex was down 707.67 points at 76,798.20, while the NSE Nifty50 fell by 242.55 points to 23,239.60.
The decline in the stock market was led by heavyweight stocks like banking, financial, IT, metal, and energy sector stocks.
Why is the market falling today?
Several factors are putting pressure on Indian markets, including global trade tensions, foreign investor activity, and post-Budget adjustments.
Global trade tensions after new US tariffs
One of the biggest reasons for the market decline is the fresh round of tariffs imposed by the US on Mexico, Canada, and China over the weekend.
- 25% tariffs on Mexican and Canadian imports
- 10% tariffs on Chinese goods
These measures have increased concerns about a possible trade war, leading to a decline in markets worldwide.
Aditya Gaggar, Director of Progressive Shares, said, “The markets were expected to be in the red after the US imposed new tariffs on key trading partners, sparking fears of a trade war. Even though India is not directly affected, the global impact is being felt in our markets as well. Investors are also reacting to sectoral changes from the Budget, while focus has now shifted to the upcoming MPC (Monetary Policy Committee) meeting.”
