stock market boomImage Credit source: ai generated
why market fall today: There was tremendous chaos in the Indian stock market today. The market which was trying to touch new heights at the beginning of this week, fell face down today. As the last trading sessions of the week approached, there was such selling pressure on Dalal Street that investors’ wealth worth Rs 3.06 lakh crore was wiped out in no time. The total market cap of BSE has come down to Rs 471.93 lakh crore.
Sensex plunged by more than 700 points and touched a low of 83,516. At the same time, Nifty 50 also broke its important support level and slipped below 25,800. This decline has colored the portfolios of common investors in red. The question is, what happened suddenly that completely spoiled the mood of the market? Let us understand in detail the major reasons behind today’s huge decline.
Fear of artificial intelligence in IT sector
The IT sector proved to be the biggest villain of today’s decline. A huge fall of about 4% was recorded in the Nifty IT index. Big stocks like Infosys, Wipro, HCL Tech and Tech Mahindra saw a fall of 4 to 5 percent. The decline of this sector alone caused investors to lose Rs 1.3 lakh crore.
America’s AI startup company ‘Anthropic’ is behind this. This company has recently launched a new AI tool for legal work. This tool can automate tasks like contract review and legal briefing. The market fears that if AI takes over these tasks, there will be a huge impact on the revenues of Indian IT companies. Dr. V.K. of Geojit Financial Services. Vijayakumar says that it is difficult for tech stocks to recover soon from this anthropic shock.
2. News from America broke hopes
The market’s eyes were fixed on the American economy, but the data from there disappointed the investors. ‘Jobs Data’ for the month of January in America has come out stronger than expected. Generally a good economy is a matter of happiness, but for the stock market it means something different.
The strong data means that the US Federal Reserve (Fed) will no longer be in a hurry to cut interest rates. Investors were hoping that interest rates would come down in June, but now according to CME Group data, the probability of rates remaining stable has increased from 24.8% to 41%. Keeping interest rates high means that foreign investors can withdraw money from markets like India and invest in safe American bonds.
3. HUL results increased the pain
The 5% fall in the shares of FMCG sector giant Hindustan Unilever (HUL) added fuel to the fire. The company released the results for the third quarter of FY 2026, in which its net profit fell by 30% to Rs 2,188 crore.
Although there has been a slight increase in the company’s revenue, the pressure on margins is clearly visible. EBITDA margin has also declined, which weakened investor confidence. The downfall of a big company like HUL brought down the sentiment of the entire market.
4. Profit booking worked well
There was a continuous rise in the market for the last four days. Nifty had crossed the level of 26,000. In such a situation, traders at the upper levels thought it better to take home their profits (Profit Booking). Market experts say that Nifty falling below 25,900 is a weak sign.
According to Ponmudi R, CEO of Enrich Money, if Nifty remains below 25,800, then further decline or consolidation may be seen in the coming days. Unless some big positive news comes, the market will be seen trading in a limited range only.
5. Increasing tension in the Middle East
Geopolitical tension at the international level has also scared investors. US President Donald Trump has given a stern warning to Iran regarding the nuclear deal. Trump has clearly indicated that if Iran does not curb its nuclear program, strict action can be taken against it.
On the other hand, Israeli Prime Minister Netanyahu is also demanding a ban on Iran’s missile program and proxy groups (like Hamas and Hezbollah). Any news of war or tension affects crude oil prices and global trade, which directly impacts the stock market.