Stock Market Today: Sensex, Nifty On Bear Mode Again; What Caused The Fall?

The Nifty Smallcap index has plummeted over 20 per cent from its all-time high in December 2024, while the Nifty Midcap index has dropped more than 18 per cent from its peak in September of last year

Stock Market Today: A combination of domestic and global challenges has triggered a sharp market correction

Source : ABPLIVE AI

Stock Market Today: The turmoil in the Indian equity market shows no signs of relief, as it extended its losing streak to a sixth consecutive session, with small and midcap stocks bearing the brunt of the decline. The continuous selling pressure over the past two months has pushed the broader market into bear territory, with midcap and smallcap indices falling almost 20 per cent from their record highs.

At 10:10 am, the Nifty Midcap and Nifty Smallcap indices were down 2-3 per cent, significantly underperforming the benchmark indices. The Sensex had fallen by 785.41 points, or 1.03 per cent, to 75,508.19, and the Nifty was down by 237.00 points, or 1.03 per cent, at 22,834.80.

Amidst the broad-based selloff, market breadth heavily favoured the decliners, with six stocks dropping for every one that advanced. Out of the total, 453 stocks gained, 2,824 declined, and 84 remained unchanged.

The Nifty Smallcap index has plummeted over 20 per cent from its all-time high in December 2024, while the Nifty Midcap index has dropped more than 18 per cent from its peak in September of last year.

Why Is A Sharp Dip?

A combination of domestic and global challenges has triggered a sharp market correction. Key factors such as Donald Trump's new tariff measures, fears of a global trade war on multiple fronts, a weakening rupee, lacklustre Q3 earnings, slower-than-expected rate cuts, and continued foreign institutional investor (FII) outflows have reinforced the bears' control over the market.

V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services believes that investors can take advantage of the current market weakness to shift their investments from mid and small-cap stocks, which are still overvalued, to large-cap stocks that are more reasonably priced.

“Trump’s tariff tantrums have been impacting the markets for the last several days. Trump moving away from targeting specific countries like Mexico, Canada and to a lesser extent China, and moving to import tariffs on steel and aluminium on all countries, has aggravated the concerns. The European Union’s declaration that they will retaliate with counter tariffs has raised the probability of a full blown trade war. How this will pan out remains to be seen,” he said.