The stock market witnessed a decline for the second consecutive day and investors suffered huge losses.
The stock market is witnessing a major decline for the second consecutive day due to profit-booking by foreign investors, fall in the rupee, delay in the trade deal between India and America, uncertainty over possible Fed policy announcements and Trump’s new tariff threat. Where the Sensex was seen falling by more than 700 points. On the other hand, Nifty saw a fall of more than 230 points. Even a day before, a decline was seen in the stock market.
According to experts, due to American data and the possibility of no change in the policy rates from the rest of the world, investors have started doubting the Fed’s policy cut. Although experts are predicting the possibility of a 25 basis point cut, investors are still adopting a cautious approach. At the same time, a decline is being seen in foreign and Asian markets also.
Due to this decline, stock market investors have suffered a loss of more than Rs 6 lakh crore. If yesterday’s loss is also included, then till now there has been a loss of more than Rs 12 lakh crore. Let us also tell you what kind of figures are being seen in the stock market.
Sensex and Nifty crashed
A big decline is being seen in the second trading stock market of the week. Bombay Stock Exchange’s main index Sensex fell by about 720 points at 84,382.96 points. Whereas a day earlier the Sensex had fallen by more than 600 points and closed at 85,102.69 points. However, this morning the Sensex had opened with a fall at 84,742.87 points. However, at 10.25 am the Sensex is trading at 84,705.82 points with a fall of about 400 points.
On the other hand, Nifty, the main index of National Stock Exchange, was also seen trading in decline. If we look at the data, Nifty was seen trading at the lower level of the day at 25,728 points with a fall of 232.55 points during the trading session. However, at 10:30 am, Nifty is seen recovering and trading at 25,807.45 points with a fall of 153.10 points. However, Nifty had opened with a fall in the morning at 25,867.10 points.
Stock market declined due to these reasons
- Concern about Fed results: Investors are worried ahead of the Fed’s two-day meeting, and traders expect an interest rate cut of 25 basis points on Wednesday. Amid persistent inflation concerns and expectations of a resilient US economy, market participants are keeping an eye on signs of an easing of interest rates in 2026. Devarsh Vakil, Head of Prime Research at HDFC Securities, said that the possibility of interest rate cut is largely a foregone conclusion. He said that the markets will focus on the Fed’s statement for signals on interest rate policy for 2026.
- Trump again threatens tariffs: US President Donald Trump has once again threatened to impose tariffs on India. This time Trump can target Indian rice. He said that India should not “dump” rice in the US market. He also indicated that he would “solve” this problem through tariffs. America is the fourth largest market for Indian Basmati rice, whose exports have reached 270,000 metric tons. Indian export prices have remained unchanged despite the tariffs, and importers are passing on the additional costs to consumers in the US.
- Rupee decline: The rupee weakened by 10 paise to 90.15 against the US dollar in early trade amid demand from corporates, importers and foreign portfolio investors. Traders said participants were waiting for clarification from the Fed before entering into new deals. In the interbank foreign exchange market, the currency opened at 90.15, which is lower than the previous closing price.
- Profit booking by foreign investors: Foreign institutional investors continued to reduce their holdings and sold Rs 655.59 crore for the 8th consecutive trading day on Monday. Continued FII selling usually adds to market weakness as foreign investors are reducing risk amid global uncertainty.
- Signs of weakness in foreign markets: Global signals also remained weak. Major Asian indices including Hong Kong’s Hang Seng, South Korea’s Kospi and Shanghai’s SSE Composite declined. US markets closed in the red on Monday due to cautious attitude of investors before the Fed’s decision.
- India US trade deal delayed: On the other hand, due to delay in India and US trade deal, there is negative sentiment among stock market investors. At present, India is one of the countries in the world which is giving the highest tariff of 50 percent to America. Unless the problem of tariffs and a trade deal with America is resolved, a downward trend may be seen in the stock market.
huge loss to investors
Due to this decline in the stock market, stock market investors have suffered huge losses for the second consecutive day. If we look at the data, the market cap of BSE after the closing of the stock market was Rs 4,64,19,108.91 crore. Which came down to Rs 4,58,01,766.69 crore on Tuesday. This means that stock market investors have suffered a loss of more than Rs 6 lakh crore in the morning itself. If Monday’s loss is also included, the figure has crossed Rs 12 lakh crore.