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Stock Market Fall Today: The BSE Sensex slipped over 850 points from its day’s high to trade below the 73,000 mark at 72,873, while the NSE Nifty declined by nearly 250 points from its day’s peak to trade at its support level of 22,000.
Stock Market Today: These 30 stocks of Nifty 500 beaten the most in past six months.
Stock Market Crash: The domestic market on Monday declined half an hour after witnessing a strong opening. The BSE Sensex slipped over 850 points from its day’s high to trade below the 73,000 mark at 72,873, while the NSE Nifty declined by nearly 250 points from its day’s peak to trade at its support level of 22,000.
PSU banks and pharma stocks are facing the biggest pressure on Monday; while auto, capital goods and metal are trading higher.
Out of the 30 shares of Sensex, 17 were trading lower. IndusInd Bank, Reliance, Bajaj Finserv, Axis Bank, and Adani Ports were the biggest losers falling by up to 3.28 per cent.
Here is why the stock market is falling today:
Incessant FII Selling
FII selling has been the prominent reason for the negative sentiments in the market. Their ‘Buy China, Sell India’ strategy is causing sell-offs in the domestic market.
Foreign institutional investors (FIIs) offloaded equities worth Rs 11,639.02 crore on Friday, according to exchange data.
“The main triggers for the sustained FII selling in India have been the high valuations and the attractive US bond yields. These important macros are undergoing a slow shift,” V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.
Pressure On Heavy Weight Stocks
Apart from persistent outflow of foreign funds, the market dipped into the red amid heavy selling in bellwether stocks Reliance Industries and HDFC Bank.
Trump Tariffs
The US is set to impose tariffs on Canada and Mexico on Tuesday. Trump’s proposed tariffs from February consisted of a 25% duty on all imports from Mexico and most from Canada (energy products were to have a 10% tariff), along with a new 10% tariff on Chinese goods. Tariffs on Canada and Mexico were delayed for a month, but Trump did enact a new 10% across-the-board tariff on Chinese products.
An additional 10% tariff on Chinese imports remains on the table for Tuesday.
The tariffs imposition has led to a rise in fears of potential trade war globally.