Stock market crash today: BSE Sensex and Nifty50, the Indian equity benchmark Indices, crashed in trade on Monday. While BSE Sensex went below 75,400. Nifty50 was below 22,850. BSE Sensex ended the day at 75,366.17, down 824 points or 1.08%. Nifty50 closed at 22,829.15, down 263 points or 1.14%.
The Indian stock markets experienced a downward trend for the second straight session on Monday, affected by multiple factors including poor corporate performance, US trade policy concerns, and ongoing foreign investor withdrawals.
The total market value of BSE-listed firms decreased by Rs 9.48 lakh crore, reaching Rs 410.03 lakh crore, according to an ET report.
US Policy Uncertainty:
President Trump’s announcement regarding 25% tariffs on Colombia following migrant deportation issues created market tension. Although Colombia later agreed to accept deportees, concerns persist about potential tariffs on Canada and Mexico from February 1st.
“A major concern is that President Trump is introducing new threats, like the 25% tariff on Colombia for refusing to accept deported illegal immigrants. The potential tariffs on Canada and Mexico are weighing on the markets,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Federal Reserve Decision:
Wednesday’s upcoming US Federal Reserve rate decision has increased market attention. Despite expectations of unchanged rates, investors await commentary on future rate adjustments.
Corporate Performance:
The current earnings season shows weakness. Nifty50 companies are projected to achieve only 3% year-on-year EPS growth in Q3, with varied sector performance.
FII Activity and Currency:
Foreign institutional investors continue selling, having withdrawn Rs 64,156 crore in equities as of January 24, 2025. The dollar index rose 0.21% to 107.66.
Global Market Impact:
International markets showed weakness with US Nasdaq futures falling 2.3%, S&P 500 futures declining 1.3%, Japan’s Nikkei dropping 0.9%, and European STOXX 50 futures decreasing 0.9%.
