Stock market crash: The decline in the Nifty 50, Sensex, and other indices has been attributed by experts to the following five factors: Selling of FIIs, the Russia Sanctions Act, declining commodity prices, geopolitical unrest, and a resurgence of trade war fears
Today's stock market: In the middle of Thursday's session, there was significant selling pressure on the Indian stock market. The Nifty 50 index, one of the major benchmark indexes, lost more than 200 points as it fell below the 26,000 barrier and to an intraday low of 25,884. The BSE Sensex has been declining since the morning, falling more than 600 points in a single day and reaching an intraday low of 84,230. Additionally, the Bank Nifty index fell more than 0.50%, reaching an intraday low of 59,564.
What is causing today's market decline?
Experts identify the following five main causes for the current decline in the Indian stock market: Geopolitical tension, FIIs selling, the Russia Sanctions Act, a drop in commodity prices, and uncertainty over Trump's tariffs.
1] The Sanctions Act on Russia
Drawing attention to the Russia Sanctions Act, "The market is down today due to the renewed fear of Trump's tariffs," stated Sugandha Sachdeva, founder of SS WealthStreet. The Russia Sanctions Act, which permits high tariffs on nations that buy Russian crude oil, was passed by US President Donald Trump. According to the statute, nations that import Russian oil might face taxes of at least 500%. The market is currently attempting to downplay that concern as India purchases Russian crude oil.
2] The sale of FIIs
Since July 2025, FIIs have continued to be net sellers in the Indian stock market despite a number of actions taken by the Indian government. The market's expectations of a trend reversal in the trading pattern of the FIIs were unfounded. According to Amit Goel, Chief Global Strategist at Pace 360, "DIIs were bound to buckle down after no FIIs' support, and this happened during the market hours on Thursday."
3] A decrease in the cost of commodities
Selling of commodities stocks was prompted by today's decline in commodity prices. Due to the decline in base and precious metal prices, metal stockpiles are already under intense pressure, according to Amit Goel.
4] A renewed concern about a trade war
Russian Sanctions Act, which imposes tariffs of at least 500% on nations that purchase crude oil from China. Additionally, Donald Trump warned nations that stood in the way of the Russia-Iran agreement. Because Trump has also threatened some NATO nations, the Russia Sanctions Act has rekindled fears of a new global trade war, according to Sugandha Sachdeva.
5] Tension in geopolitics
Geopolitical tension is predicted to increase following the US-Venezuela war because China may view this US military action as a signal to acquire Taiwan. According to Amit Goel of Pace 360, "there are a number of other nations in the world that have an example to solve their personal problems without keeping the United Nations Organization (UNO) in confidence."
Additionally, Amit Goel of Pace 360 stated that there is total ambiguity around Trump's tariffs because the US Supreme Court will be hearing a dispute on their legality. There will be total turmoil if the US Supreme Court rules that Trump's tariffs are unlawful.
0 Comments