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SUMMARY
A confluence of global and domestic factors triggered a sharp decline in Indian equities today, with the Nifty falling below 22,750 and the Sensex losing over 600 points. Here’s what drove the market lower.
1 / 6Market Overview: Indian stock markets witnessed a significant downturn in today’s session as the Nifty slipped nearly to 22,700 level and the Sensex lost over 600 points. Heavy selling was seen in real estate, pharma, IT, and auto stocks, while broader market sentiment remained weak. The decline was largely driven by persistent foreign investor selling, rising crude oil prices, and geopolitical concerns. Here are the five key reasons behind today’s market fall.
2 / 61. Trump’s tariff warning shakes investor confidence: Former US President Donald Trump reiterated his stance on imposing reciprocal taxes on imports, raising concerns over potential trade disruptions. This has rattled investors, particularly in sectors like pharmaceuticals and automobiles, which rely heavily on exports to the US.
3 / 62. Sustained selling by foreign investors: Foreign Institutional Investors (FIIs) offloaded shares worth ₹3,311 crore on Thursday, bringing their total outflow for the year to nearly ₹98,229 crore. The persistent selling pressure has dampened sentiment, particularly for large-cap stocks, dragging the indices lower.
4 / 63. Chinese markets gain favour over Indian equities: A fresh wave of buying in Chinese equities, particularly after President Xi Jinping’s meeting with top business leaders, has attracted global investors. The Hang Seng Index surged over 3%, drawing funds away from Indian markets and adding to the selling pressure. (Image: Shutterstock)
5 / 64. Rising crude oil prices add to inflation concerns: Brent crude prices continued their upward momentum, driven by concerns over supply disruptions from Russia. India, as a major oil importer, faces risks of a higher trade deficit and inflationary pressures, making investors wary of further market volatility.
6 / 65. Reduced hopes of US Fed rate cuts: Stronger-than-expected US inflation data has tempered expectations of multiple interest rate cuts by the Federal Reserve in 2025. With policymakers indicating only two possible rate cuts this year, global liquidity conditions could remain tight, impacting emerging markets like India. (AP Photo/Alex Brandon, File)
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