Stock market crash: The stock market crashed during the early trading session on Friday, dragged down by IT, telecom, and auto stocks.
At 10 am, the benchmark BSE Sensex was down by 1,014.08 points or 1.36%, reaching 73,598.35. The broader NSE Nifty was 300.45 points down or 1.33% in the red, reaching 22,244.60.
Why did the stock market crash today?
The stock market fell due to multiple reasons, such as weak earnings by Indian banks, MSCI rejig, DIIs stuck at higher levels, rising US bond yield, and FIIs moving from India to China, according to a Mint report.
Another reason was market uncertainty due to tariffs announced by US President Donald Trump.
“Stock markets dislike uncertainty, and uncertainty has been on the rise ever since Trump was elected US president,” V K Vijayakumar, chief investment strategist at Geojit Financial Services told PTI.
“The spate of tariff announcements by Trump has been impacting markets, and the latest announcement of an additional 10 per cent tariff on China is a confirmation of the market view that Trump will use the initial months of his presidency to threaten countries with tariffs and then negotiate for a settlement favourable to the US.”
Yet another reason is the US dollar maintaining its position near multi-week peaks against primary currencies. The dollar index reached 107.35 on Friday against six major currencies.
This strengthening ends up creating challenges for emerging markets such as India, increasing the cost of foreign investments and prompting equity capital outflows, according to a Times of India report.
Which stocks fell the most?
Among the Sensex stocks, IndusInd Bank fell the most by 5.19%, trading at ₹992. This was followed by Tech Mahindra, which fell 4.57%, trading at ₹1,514.70, and Mahindra & Mahindra, which fell 4.32%, trading at ₹2,608.15.
Only one out of the 30 Sensex stocks was in the green. Reliance Industries was up 0.40%, trading at ₹1,211.85.
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How did individual sectors perform?
Among the Nifty sectoral indices, the Nifty Midsmall IT & Telecom Index fell the most by 3.70%, reaching 8,783.10.
This was followed by the Nifty IT Index, which fell 3.54%, reaching 37,567.75, and the Nifty Auto Index, which fell 2.97%, reaching 20,701.90.
The Nifty Midsmall IT & Telecom Index was dragged down by Zensar Technologies (5.55% down), Persistent Systems (5.10% down), and Tata Technologies (4.49% down).
The Nifty IT Index was dragged down by Persistent Systems (5.10% down), Tech Mahindra (4.74% down), and MphasiS (4.23% down).
The Nifty Auto Index was dragged down by Mahindra & Mahindra (4.40% down), Ashok Leyland (4.02% down), and Samvardhana Motherson International (3.86% down).
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How did the stock market open today?
The stock market plunged into the red as the trading session began today, with mid and small cap IT and telecom stocks, along with metal and auto stocks, falling the most.
At 9:20 am IST, the benchmark BSE Sensex plummeted by 746.12 points or 1%, reaching 73,866.31. The broader NSE Nifty opened 221.15 points down or 0.98% in the red, reaching 22,323.90.
Among the 30 Sensex stocks, IndusInd Bank fell the most upon opening by 4.07%, trading at ₹1,003.75. This was followed by Mahindra & Mahindra, which fell 2.86%, trading at ₹2,648.00, and NTPC, which was down by 2.61%, trading at ₹307.50
All of the Sensex stocks were in the red.
Among the Nifty sectoral indices, the Nifty Midsmall IT & Telecom Index fell the most by 2.52%, reaching 8,890.50. This was followed by Nifty Metal, which fell 2.10, reaching 8,159.80, and Nifty Auto, which was down 1.98%, reaching 20,913.80.
