Why Did Markets Close In Red? Indices Crash Over 1 Per Cent, Sensex Ends Under 76,300

The BSE Sensex settled the session under the 76,300 mark at 76,293.60, nosediving over 1,000 points in the session, while the NSE Nifty50 closed trading at 23,071.80, plunging more than 300 points.

In the broader markets, the Nifty Microcap 250 index ended the session 3.64 per cent lower, followed by the Nifty Smallcap 50 index which plunged 3.50 per cent.

Source : ABPLIVE AI

The Indian stock market ended the trading session on Tuesday in a bloodbath. The equity benchmark indices, Sensex and Nifty, crashed over 1 per cent as consistent foreign fund outflows, global trade conflicts, and muted earnings weighed down heavily on the sentiment in the market.

The BSE Sensex settled the session under the 76,300 mark at 76,293.60, nosediving over 1,000 points or 1.32 per cent in the session, while the NSE Nifty50 closed trading at 23,071.80, plunging more than 300 points. 

Broader Markets

On the 30-share Sensex platform, Bharti Airtel emerged as the only exception in green. On the other hand, the laggards in the day included Zomato, Tata Steel, Bajaj Finserv, PowerGrid, and L&T, among others. 

In the broader markets, the Nifty Microcap 250 index ended the session 3.64 per cent lower, followed by the Nifty Smallcap 50 index which plunged 3.50 per cent.

Sectorally, the Midsmall Financial Services index dominated in red and tanked 3.76 per cent, while the Midsmall Healthcare and Financial Services Ex-bank indices registered losses of 3.28 per cent and 3.15 per cent respectively.

Why Did Markets Crash Today?

Consistent tariff threats, along with additional tariffs expected on steel and aluminium imports from the US have negative impacted investors. As a result, other countries are looking into taking retaliatory actions, increasing the possibilities of a full-fledged trade war. 

Vinod Nair, Head of Research, Geojit Financial Services, explained, “The ongoing uncertainty surrounding US trade policies and tariffs, coupled with domestic economic growth concerns and persistent selling by FIIs, is dampening market sentiment. The mid and smallcap stocks experienced significant declines due to demand concerns and higher valuations.”

The foreign institutional investors (FIIs) dumped Indian equities worth Rs 2,463.72 crore on Monday, official exchange data revealed. Asian markets witnessed Shanghai and Hong Kong closing lower, while Seoul ended the day higher. The European markets traded mostly in the negative territory. The US markets ended trading on Monday in green. The global oil benchmark Brent crude jumped 1.15 per cent to touch $76.74 per barrel.