Stock Market Crash Today: Sensex Falls 900 Points, Nifty 50 Slides Below 25,600 – Top 5 Reasons Behind Market Sell-Off
The Indian stock market witnessed a sharp sell-off in early trade on Friday, tracking weak global cues and heavy selling in IT stocks. Both benchmark indices — the Nifty 50 and the Sensex — opened lower and extended losses during the opening session, triggering concerns among investors.
Market Opening Snapshot
Nifty 50 opened with a gap-down at 25,571 and slipped to an intraday low of 25,513, falling nearly 300 points in early trade.
BSE Sensex opened at 82,902 and dropped to 82,771, logging a sharp decline of over 900 points.
Bank Nifty also declined, opening at 60,504 and falling to 60,359, down 376 points.
Market experts attribute the decline to global weakness, AI-led selling in IT stocks, concerns over US inflation data, and profit-booking after the recent rally.
Why Is the Indian Stock Market Down Today? Top 5 Factors
1️⃣ Heavy Sell-Off in IT Stocks
The biggest drag on the market came from sustained selling in IT stocks. The IT sector accounts for nearly 10% of the Nifty 50’s weight and remains one of the largest profit contributors to India Inc.
According to Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, panic selling in IT stocks may not be justified yet. The recent global correction in AI-linked stocks has triggered caution, but the long-term impact on Indian IT firms remains uncertain.
He also noted that if the global AI trade unwinds further, it may actually benefit Indian markets in the medium term.
2️⃣ Weak Global Cues & Nasdaq Decline
The decline in US markets, particularly the 2% fall in the tech-heavy Nasdaq Composite, weighed heavily on investor sentiment in India.
Market experts believe that continued weakness in US equities could further pressure global markets, including India.
3️⃣ US CPI Data Uncertainty
Investors are closely watching upcoming US Consumer Price Index (CPI) data. Since the data release is scheduled after Indian market hours, traders avoided carrying large positions ahead of potential volatility.
Concerns remain that stubborn inflation in the US could delay interest rate cuts, which may negatively impact emerging markets like India.
4️⃣ Profit-Booking After India-US Trade Deal Rally
The recent rally following the India-US trade deal announcement had pushed markets higher. However, analysts say the gains were largely sentiment-driven.
Experts believe it may take 6–9 months for the trade deal to show real economic impact. As a result, investors used the current uncertainty as an opportunity to book profits.
5️⃣ Rupee Volatility & FII Sentiment
Volatility in the Indian Rupee against the US Dollar added to market nervousness. Although Foreign Institutional Investors (FIIs) were net buyers recently, a weakening rupee could impact their confidence.
Currency instability often increases foreign outflows, putting additional pressure on equities.
Expert View: Should Investors Panic?
Market analysts suggest that while short-term volatility may continue, panic selling may not be advisable. Corrections often create buying opportunities for long-term investors.
The coming sessions will largely depend on:
- US inflation data
- Global market trends
- Stability in the IT sector
- Currency movement
- Conclusion
The Indian stock market's sharp fall on Friday was driven by a combination of global weakness, IT stock correction, profit-booking, and macroeconomic uncertainty. While benchmark indices like the Nifty 50 and Sensex witnessed significant losses, experts believe the situation remains fluid rather than alarming.
Investors are advised to stay cautious, avoid emotional decisions, and focus on fundamentals during this volatile phase.
0 Comments