Indian Stock Market Crash Today: The Indian equity benchmark indices, BSE Sensex and Nifty 50, experienced a sharp decline in early trading on Friday. The BSE Sensex plunged below the 73,320 mark, while Nifty 50 dipped below 22,150. As of 12:55 PM, the BSE Sensex was recorded at 73,319.12, down by 1,293.31 points or 1.73%, and Nifty 50 stood at 22,149.35, dropping 395.70 points or 1.76%.

Stock Market: Sensex & Nifty

The market witnessed significant selling pressure in the banking and IT sectors, contributing to the steep fall. Investors remained cautious ahead of the upcoming GDP data and reacted to recent tariff-related statements by former US President Donald Trump.

The overall market capitalization of companies listed on the BSE decreased by approximately Rs 5.8 lakh crore, bringing the total to Rs 387.3 lakh crore, as reported by ET.

Nifty IT stocks led the decline, dropping up to 4% following weak overnight performance in US markets, particularly driven by Nvidia’s lackluster results.

Stock Market Crash

Stock Market Crash

Anticipation of GDP Data

Market sentiments are currently under pressure as investors await the December quarter GDP data, which will be announced post-market hours on Friday. Persistent concerns over slowing economic growth, weakening corporate earnings, and continuous selling by foreign investors have resulted in a 14% drop in benchmark indices from their peak levels in late September. However, a Reuters poll of economists indicates that India’s economic performance might have improved during this period.

Uncertainty in Global Trade Policies

Recent trade policy shifts have added to market volatility. The U.S. administration announced that the implementation of 25% tariffs on Canadian and Mexican imports would be advanced to March 4 from the initially planned April 2. Additionally, a 10% tariff on Chinese imports was introduced, while 25% duties on European Union shipments remain unchanged. These unpredictable changes have heightened investor concerns, contributing to global market instability.

Stock Market Crash: IT Sector

The IT sector faced a significant downturn, mirroring the global trend. Asian markets witnessed a dip, with the MSCI Asia ex-Japan index falling by 1.21%, following Wall Street’s negative session triggered by Nvidia’s sharp decline. This downturn in AI-related stocks, including companies from the “Magnificent Seven” group, further weighed on the technology sector. The Nifty IT index registered a 3.2% decline, with stocks like Persistent Systems, Tech Mahindra, and Mphasis sliding up to 4.5%.

Strengthening US Dollar

The US dollar remains strong, hovering near multi-week highs against major currencies, driven by ongoing trade war concerns. The U.S. dollar index touched 107.35 on Friday, posing challenges for emerging markets like India. A stronger dollar increases the cost of foreign investments, triggering capital outflows and further pressuring equity markets.

Nifty 50, Sensex Today: Stock Market Updates