Stock Market Free Fall Continues: Sensex Tanks 800+ Points – 3 Reasons Driving the Fall

New Delhi: Dalal Street again crashed on Wednesday morning as Sensex dipped 800 points while NIfty fell below 22,900. The trend continued today amid weak earnings, concerns over US trade policies, and foreign institutional investor (FII) selling weighed on sentiment.

Meanwhile, Hyundai surged 3%, benefiting from strong investor interest, whereas Zomato dropped 2% amid profit booking. On the currency front, the rupee strengthened by 26 paise to 86.53 against the US dollar in early trade.

In the derivatives segment, GIFT Nifty on the NSE IX traded 52.5 points higher at 23,180, hinting at a possible recovery later in the session.

Top gainers and losers

At this hour, top losers in the market include Sammaan Capital Ltd., which fell 10% to Rs 122.61, followed by Ircon International Ltd., down 9.19% at Rs 163.33. Vodafone Idea Ltd. dropped 7.15% to Rs 8.19, while Amber Enterprises India Ltd. slid 7.14% to Rs 5973.80. Tata Investment Corporation Ltd. declined 6.87% to Rs 5304.75, and Bayer Cropscience Ltd. lost 6.75% to Rs 4464.90. Bharat Dynamics Ltd. and Rain Industries Ltd. also saw sharp declines of 6.42% and 6.30%, respectively.

On the gainers' side, Elgi Equipments Ltd. rose 2.53% to Rs 549.80, AB Cotspin India Ltd. gained 2.08% to Rs 488.00, and United Breweries Ltd. advanced 1.82% to Rs 2060.00. Tech Mahindra Ltd. climbed 0.98% to Rs 1685.35, while Tata Consultancy Services Ltd. inched up 0.91% to Rs 3999.50.

The Indian stock market has been in free fall, with Sensex and Nifty50 plunging nearly 3% in the last five trading sessions. Investors have suffered losses of Rs 16.97 lakh crore, driven by weak earnings, US trade policy concerns, and continuous foreign fund outflows. The BSE benchmark index has declined by 2,290.21 points (2.91%), with banking, auto, metal, and IT stocks leading the downfall.

US President Donald Trump has imposed a 25% tariff on all steel and aluminium imports, eliminating previous exemptions. This move, effective from March 4, aims to boost US industries but risks global trade conflicts. Countries like Mexico, Brazil, South Korea, and Vietnam are expected to be the most affected. The policy has added uncertainty to global markets, impacting investor sentiment.

FIIs have withdrawn $9.94 billion from Indian equities this year, adding downward pressure on the market.

The US 10-year Treasury yield stands at 4.495%, with a strong dollar index at 108.36, making US investments more attractive and triggering capital outflows from emerging markets like India.

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