Stock Market Crash: Sensex Closed Over 1400 Points Lower, Nifty Below 22,200

The market closed lower for the 5th consecutive month, marking their longest losing streak in 29 years. A mix of concerns has led it to fall 18 per cent from its record highs in late September

The Sensex and Nifty fell nearly 2 per cent, driven by widespread selling as concerns about a potential global trade war and a slowing US economy unsettled investors. The market saw a total loss of Rs 8.8 lakh crore in market capitalisation. All 13 major sectoral indices were deep in the red, with the BSE Smallcap and BSE Midcap indices suffering the most, each dropping over 2 per cent. IT and financial stocks, sectors with significant foreign investor stakes, accounted for half of Nifty 50’s losses.

By the close of trading, the Sensex had dropped 1,420 points, or 1.9 per cent, to 73,192, while the Nifty lost 418 points, or 1.9 per cent, finishing at 22,126. On the NSE, market breadth was overwhelmingly negative, with only 400 stocks advancing compared to a staggering 2,221 decliners. 

The biggest losers in the Nifty 50 were M&M, Bharti Airtel, Wipro, Tech Mahindra, and IndusInd Bank. On the other hand, Hindalco, Trent, HDFC Bank, and Coal India were the top gainers of the session.

The benchmarks closed lower for the fifth consecutive month, marking their longest losing streak in 29 years. A mix of concerns over slowing economic growth, weakening earnings momentum, Trump’s trade policies, and persistent selling by foreign investors has led the indices to fall 18 per cent from their record highs in late September.

On Thursday, US President Donald Trump announced that a 25 per cent tariff on Mexican and Canadian goods would be implemented on March 4, along with an additional 10 per cent duty on Chinese imports, citing the ongoing flow of deadly drugs into the US. These tariffs would be in addition to the 10 per cent levy imposed on February 4 over the fentanyl crisis, bringing the total duty on Chinese imports to 20 per cent.

Expert Comment

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, explained that stock markets are generally averse to uncertainty, and such uncertainty has increased since Trump became US President. "The spate of tariff announcements by Trump has been impacting markets and the latest announcement of an additional 10 per cent tariff on China is a confirmation of the market view that Trump will use the initial months of his presidency to threaten countries with tariffs and then negotiate for a settlement favourable to the US," he said.

Sectorial Update

The sectoral carnage was most severe in IT stocks, with the index plummeting over 4 per cent after US jobless claims data raised concerns about an economic slowdown. So far this week, the IT index has lost nearly 8 per cent, significantly outpacing the broader Nifty 50's decline of over 2 per cent.

Banking stocks also faced pressure, with the Nifty Bank index dropping 0.8 per cent as 11 of its 12 constituents closed lower. Other sectors also took a hit, with Nifty Auto, Nifty FMCG, Nifty PSU Bank, Nifty Healthcare, Nifty Oil & Gas, and Nifty Media falling 2-4 per cent.