Why Did Market Fall Today? Sensex Crashes By 856.65 Points, Nifty Down Below 22,600 – News18
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The BSE Sensex declines by 856.65 points to close below the 75,000 mark at 74,454.41, while the NSE Nifty declined 242.55 points to end the day below the 22,600 level at 22,553.35.
Stock Market Today.
In a session that remained under stress throughout the day, the BSE Sensex on Monday plummeted by 856.65 points to close below the 75,000 mark at 74,454.41, while the NSE Nifty declined 242.55 points to end the day below the 22,600 level at 22,553.35. The Indian stock market on Monday declined even as global headwinds continue to weigh on the domestic market, with persistent volatility causing uncertainty among retail investors.
Both Sensex and Nifty are at their around eight-month-low levels.
Among the 30 Sensex shares, 23 ended the day in red. Among the top losers were HCL Tech, Zomato, TCS, Infosys, Bharti Airtel, and Tech Mahindra declining by up to 3.32 per cent.
However, seven stocks closed in green — Mahindra & Mahindra, Kotak Mahindra Bank, Maruti Suzuki, Nestle India, ITC, Axis Bank, and Hindustan Unilever — rising by up to 1.58 per cent.
Among the total 4,200 stocks on the BSE, 1,207 saw advances (whose prices have increased), 2,811 witnessed declined (whose prices have fallen), while 183 scrips saw no change in their prices.
A total of 61 stocks traded at their 52-week highs, while 283 traded at their 52-week lows.
Why Did Stock Market Fall Today?
The domestic equities markets were down on Monday taking cues from the US market which slumped in the previous trade amid concerns over softening consumer demand as well as tariff threats.
The consumer sentiment in the US hit a 15-month low as inflation in America is expected to rise due to additional tariff measures.
Stagflation, which is a situation in which the economy faces slowing growth and rising prices, in the world’s largest economy US is a troubling sign for India’s export-driven sectors, particularly IT.
Vinod Nair, head of research at Geojit Financial Services, said, “Global headwinds continue to weigh on the domestic market, with persistent volatility causing uncertainty among retail investors, who generally have a lower risk appetite. Weak US consumer sentiment and tariff concerns may further pressure export-oriented sectors such as IT.”
Looking ahead, the pace of earnings downgrades is expected to ease, supported by increased government spending, lower interest rates, and tax reductions. These factors are likely to provide a boost to sectors such as FMCG, consumer discretionary, and banking, he added.
Vaibhav Vidwani, research analyst at Bonanza, said, “This downturn was largely influenced by ongoing foreign institutional investor (FII) selling, which has been persistent due to global market dynamics favouring the US and China. The ‘Sell India, Buy China’ trend, driven by China’s economic recovery initiatives and relatively cheaper stock prices, continues to impact Indian equities negatively.”
Investors remain cautious about US tariff policies and await signs of economic growth in India. Investors look ahead, they are closely watching developments in global markets and economic indicators for potential recovery signs in the Indian stock market, he added.
Technical Analysis
“The Nifty has broken down from a bearish flag and pole pattern, signaling the start of a correction. From here, the index may continue to decline in the short term, moving toward lower levels. Immediate support is seen at 22,450, and a drop below this level could trigger a further correction toward 22,200 or lower. On the upside, immediate resistance is observed in the 22,670-22,700 range,” said Rupak De, senior technical analyst at LKP Securities.
“On the daily chart, Nifty has formed a red candle, indicating weakness. Furthermore, the index breached the 22,700 support level and closed below it. Thus, on the upside, 22,700-22,800 will serve as a solid resistance zone. On the downside, the index will find initial support at 22,500, followed by the 22,050 level, where the 100-weekly Exponential Moving Average is positioned. Traders should monitor these levels for potential trading opportunities,” said Hrishikesh Yedve, assistant vice-president (technical and derivatives research) at Asit C Mehta Investment Interrmediates.
