Stock Market plunges! Sensex sinks 1,000+ points, Nifty falls 300
The stock market plunged on Friday morning, dragged down by IT, telecom, and auto stocks. At 10 am, the BSE Sensex fell 1,014 points (1.36%) to 73,598, while the NSE Nifty dropped 300 points (1.33%) to 22,244.
Why Did the Market Crash?
Multiple factors triggered the sell-off. Weak earnings from Indian banks, MSCI index changes, and domestic institutional investors (DIIs) stuck at high levels added pressure. Rising US bond yields and foreign institutional investors (FIIs) shifting to China further fueled the decline.
US President Donald Trump’s tariff announcements increased market uncertainty, worsening investor sentiment. Experts noted that markets dislike uncertainty, and Trump’s aggressive tariff stance raised concerns. The US dollar surged to 107.35, making foreign investments costlier for emerging markets like India. This led to capital outflows, adding to market weakness.
Which Stocks Fell the Most?
Among Sensex stocks, IndusInd Bank tumbled 5.19%, trading at ₹992. Tech Mahindra dropped 4.57%, while Mahindra & Mahindra fell 4.32%. Only Reliance Industries remained in the green, gaining 0.40% to ₹1,211.85.
Sectoral Performance
The Nifty Midsmall IT & Telecom Index suffered the biggest loss, down 3.70% to 8,783.10. The Nifty IT Index dropped 3.54%, while the Nifty Auto Index declined 2.97%.
- IT & Telecom: Zensar Technologies (-5.55%), Persistent Systems (-5.10%), Tata Technologies (-4.49%).
- IT Sector: Persistent Systems (-5.10%), Tech Mahindra (-4.74%), MphasiS (-4.23%).
- Auto Sector: Mahindra & Mahindra (-4.40%), Ashok Leyland (-4.02%), Samvardhana Motherson (-3.86%).
Market Opening Plunge
The market opened deep in the red, with mid and small-cap IT, telecom, metal, and auto stocks leading losses.
At 9:20 am, Sensex fell 746 points to 73,866, while Nifty dropped 221 points to 22,323. All 30 Sensex stocks were in the red. IndusInd Bank led losses (-4.07%), followed by Mahindra & Mahindra (-2.86%) and NTPC (-2.61%).
What’s Next?
Investors remain cautious as uncertainty looms. Analysts expect continued volatility amid global economic shifts. Traders should watch for policy updates, bond yields, and FII movements for market direction.
