Why market is down today: Inauspicious things happened in the Indian stock market on Tuesday. In early trading itself, the Sensex plunged by almost 800 points to the level of 82,504. At the same time, Nifty also could not recover and slipped to 25,482, breaking the important support level of 25,500. This sudden decline has pushed the portfolios of common investors into the red. The excitement that was visible in the market for the last two days completely disappeared within a few hours. By 11 am, Sensex had fallen by 800 points and Nifty also recorded a huge fall of 230 points. Heavy selling pressure was also seen in small and medium stocks, where Nifty Midcap and Smallcap indices fell by almost half a percent. There was an atmosphere of disappointment everywhere in the market except metal and government banks.
Outcry in IT sector
The shares of IT companies have given the deepest wound to the market. In fact, recently America’s artificial intelligence company Anthropic made a big claim that their new cloud code tool is capable of updating old software systems at very low cost and easily. After the arrival of this news, shares of IT companies are continuously falling. Today’s situation was such that by 9:30 in the morning the Nifty IT index had fallen by 3 percent.
Global market battered by Trump’s storm
Foreign signals have also played a big role in this decline of the market. There was already an atmosphere of sluggishness in the Asian markets, but the news from America increased the concern further. US President Donald Trump has warned that if countries withdraw from new trade agreements despite the Supreme Court canceling the tariffs, he will impose tougher taxes under other trade laws.
This tough stance of Trump has once again created a situation of uncertainty at the global level. Due to this fear, there was a huge fall in Wall Street overnight and it also had a direct impact on the sentiment of the Indian stock market. There is currently an atmosphere of fear in the markets around the world, which is forcing big investors to be cautious and withdraw money.
Expensive crude oil, rupee weakened
The biggest concern for the common man and the country’s economy is the rising prices of crude oil and the weakening rupee. In the international market, Brent crude has jumped one percent to reach $ 72.13 per barrel. Expensive oil increases India’s import bill significantly, due to which there is a big risk of increase in inflation rate in the future. This can have a direct impact on the prices of everyday items and your pocket.
The weakness of the rupee against the dollar is continuously breaking the morale of the market and investors. In early trade, the rupee weakened by 7 paise to 90.96. However, purchases by foreign institutional investors limited this decline to some extent. Apart from this, there is also weekly expiry of Nifty derivatives on Tuesday. Traders are adjusting their old positions, due to which there was huge volatility in the market throughout the day.