Significant Drop in the Share Market Today: Sensex and Nifty Fall Over 1%
Share Market Crash Today: US President Donald Trump's announcement of a 25% tariff on steel and aluminum imports has sent global markets into turmoil. This decision significantly impacted the Indian share market, resulting in a sharp decline in domestic benchmark indices on Tuesday. Both the Sensex and Nifty crashed. By 2 PM, the Sensex had fallen 1.33% to 76,284.36, while the Nifty was down 1.38% at 23,059.25.
Concerns from the Indian Steel Association (ISA)
The Indian Steel Association (ISA) expressed deep concern over the US's decision to increase tariffs on steel imports. The association urged the Indian government to intervene and remove long-standing anti-dumping and countervailing duties. This decision is expected to result in an 85% decline in Indian steel exports to the US.
Potential Impact on the Indian Market
Experts believe the new tariffs could lead to a global steel surplus, putting pressure on prices in the Indian market. Following this decision, shares of companies like Eicher Motors and Apollo Hospitals witnessed significant declines. The Nifty Realty and Nifty Auto sectors were the hardest hit on the Nifty. Furthermore, the Nifty Media and Nifty Pharma indices also saw a downturn.
Technical Analysis: Signs of a Downturn
Technical charts show the Nifty forming a bearish candlestick, indicating negative market sentiment. The index faces significant resistance at the 23,460 level. If this level is not breached, further market decline could be expected. However, if the Nifty breaks above 23,460, it could rise to levels of 23,550 and 23,700.
Pressure on the Market from Foreign Investor Sell-off
Heavy selling by foreign investors is another major reason for the decline in the Indian share market. On February 10th, Foreign Institutional Investors (FIIs) sold shares worth ₹2,463 crore, while Domestic Institutional Investors (DIIs) bought shares worth ₹1,515 crore.
Expert Advice: Exercise Caution
According to Akash Shah, Senior Analyst at Choice Broking, "Foreign investor selling will significantly impact the market's direction. Investors are advised to wait for a valuation correction in the market before taking new positions."
