The Indian stock market saw a major decline today. The BSE Sensex was down 1.02% to 74,543.15, and the Nifty 50 index dropped 1.04% to 22,558.65. This was clearly a sentiment that was carried over from Friday. The Indian stock market closed down on Friday, continuing its downward trend for the fourth straight session and the second consecutive week. The Nifty 50 closed 117.25 points, or 0.51%, down at 22,795.90, while the Sensex dropped 424.90 points, or 0.56%, to end at 75,311.06 before the weekend. Amidst this, concerned investors were digging deep into this downfall.
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Looking Into The Reason Behind India’s Stock Market Crash
India’s stock market saw losses in all 13 of its key sectors, with the banking and IT industries suffering the most. Auto, IT, pharmaceutical, and real estate equities all saw selling, but overall market sentiment remained low. A broad-based sell-off was also indicated by the 1.3% and 1.5% declines in the mid-cap and small-cap indices, respectively.
India’s market turned red due to a number of factors. President Donald Trump reiterated his support for reciprocal import taxes while voicing concerns about potential trade disruptions. Investors are concerned about this, particularly those in sectors like pharmaceuticals and autos that rely heavily on exports to the US. There was a significant downturn in the US market as a whole. On Friday, the US stock market closed lower. In February, the US business activity index hit a 17-month low. In addition, expectations for inflation skyrocketed in February as US consumer morale fell more than anticipated to a 15-month low.
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Asian Market
Following sharp losses on Friday due to bad economic data, Asian markets saw weaker trading on Monday. Indian stocks were seen losing ground to Chinese markets. Global investors have been drawn to Chinese stocks in a new wave of purchases. This came to light following President Xi Jinping’s meeting with influential business executives. The selling pressure increased as the Hang Seng Index jumped more than 3%, pulling money out of Indian markets.
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