The Indian stock market experienced a significant downturn today, resulting in losses amounting to billions of rupees for investors. The BSE Sensex plummeted by 1390.41 points, closing at 76,024.51, while the NSE Nifty also fell by 353.65 points, closing at 23,165.70. The market witnessed consistent selling pressure, leading to a substantial decline in investors' market capitalization.
Business News: The Indian stock market saw another sharp decline today, causing billions of rupees in losses for investors. The BSE Sensex fell 1,390.41 points to close at 76,024.51, while the NSE Nifty dropped 353.65 points to close at 23,165.70. Widespread selling characterized the market, resulting in significant losses for investors.
On March 28th, when the market closed, the total market capitalization of BSE-listed companies was ₹4,12,87,646 crore. However, today's sell-off reduced this to ₹4,09,64,821.65 crore. This decline resulted in a loss of ₹3.49 lakh crore for investors.
Key Reasons for the Decline
1. Fear of Trump's Tariff Increase
US President Donald Trump's announcement of tariff increases on several countries, including India, starting April 2nd, has created fear among investors. This has increased tension in global markets and impacted the Indian stock market. Investors are concerned about the economic consequences of this decision.
2. Pressure on the IT Sector
Shares of Indian IT companies, heavily reliant on the US market, fell by 1.8% today. The anticipated economic slowdown and reduced demand due to tariff increases have affected this sector. Following a 15% decline in the March quarter, further pressure was observed in the market today.
3. Surge in Oil Prices
The continuous rise in crude oil prices is increasing economic pressure. Brent crude prices reached $74.67 per barrel, while US West Texas Intermediate (WTI) traded at $71.37. The increase in oil prices has also heightened concerns about inflation and fiscal deficits, negatively impacting the market.
4. Profit-Booking after Rally
The Nifty and Sensex recently saw a rise of approximately 5.4%, creating a positive atmosphere among investors. However, investors are now engaging in profit-booking, increasing selling pressure on large-cap stocks. The sharp increase in valuations has made some traders cautious, contributing to the market decline.
