Black Monday for Stock Market: Sensex Crashes Over 800 Points, 230 Stocks Hit 52-Week Low
Stock Market Crash: The stock market started the week on a weak note due to global uncertainties triggered by Donald Trump’s tariff war and continued selling by foreign investors. The Sensex, which opened over 500 points lower, plunged 807.67 points. By 10:39 AM, it was trading down 758.10 points. Meanwhile, the Nifty 50 fell below 22,600, touching 22,548.35. Investors have collectively lost over ₹4.09 lakh crore.
230 Stocks Hit Yearly Lows
At the BSE, out of 3,771 traded stocks, only 998 were in the green, while 2,609 stocks declined. Among them, 230 stocks touched their 52-week low, and 274 hit the lower circuit. The bearish trend also impacted small-cap and mid-cap stocks, with both indices dropping over 500 points.
Key Reasons Behind the Market Crash
Trump’s Tariff War: US President Donald Trump has announced reciprocal tariffs on global markets and hinted at tough measures against India. The potential for higher tariffs on Indian pharma companies has created uncertainty. However, details on which sectors and countries will be affected remain unclear, leading to cautious trading by investors.
Foreign Institutional Investor (FII) Sell-Off: FIIs have been aggressively selling stocks due to trade war concerns and Trump’s policies. Since the beginning of this year, FIIs have withdrawn nearly ₹1 lakh crore from Indian markets. On Friday alone, they pulled out ₹3,449.15 crore.
Weak US Economic Growth: The US economy is showing signs of slowing down, with weakened consumer sentiment further affecting stock market performance. Inflation concerns due to Trump’s trade policies have also raised fears of declining consumer demand.
Market Overvaluation and Correction: The Indian stock market has seen strong growth over the past three years, making a correction inevitable, according to analysts. Since the COVID-19 pandemic, Sensex and Nifty have surged significantly, and a major downturn was anticipated in 2025.
With increasing volatility, investors remain cautious amid global economic uncertainty.
