Stock market crash today: BSE Sensex and Nifty50, the Indian equity benchmark indices, crashed in trade on Friday. While BSE Sensex went below 73,3200, Nifty50 was below 22,150. BSE Sensex ended the day at 73,198.10, down 1,414 points or 1.90%. Nifty50 ended at 22,124.70, down 420 points or 1.86%.
The sharp fall occurred amidst widespread selling before crucial GDP data release and worries regarding recent tariff remarks by US President Donald Trump, coupled with US economic slowdown concerns. The collective market value of BSE-listed firms reduced by Rs 8.9 lakh crore, settling at Rs 384.22 lakh crore.
The Nifty IT index experienced substantial losses up to 6.5%, following the downward trend in Wall Street, particularly affected by Nvidia’s decline. Tech Mahindra, Wipro, and Mphasis emerged as the biggest decliners.
Additionally, the Nifty Auto index recorded a nearly 4% decline, whilst other sectors including Nifty Bank, Metal, Media, FMCG, Pharma, Realty, Consumer Durables, and Oil & Gas indices showed decreases ranging from 0.7% to 3.5%.
“The national market experienced a sharp decline amid heightened bearish sentiment largely influenced by weak global cues. The decline was largely triggered on fear of the implementation of 25% tariff on U.S. imports from Canada and Mexico, set to take effect next week, along with an additional 10% tariff on Chinese goods. Adding to market jitters, the potential imposition of tariffs on the European Union has further fuelled uncertainty. As investors navigate this volatility, all eyes are on the domestic Q3 GDP data, which could provide vital insights into the economic recovery trajectory and influence market direction,” said Vinod Nair, Head of Research, Geojit Financial Services.
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The main factors influencing today’s market decline are:
1) Apprehension regarding GDP data
Economic growth concerns, declining earnings momentum, Trump’s trade policies, and continuous foreign investor selling have resulted in benchmarks falling 14% from their peak levels in late September.
Investors are attentively monitoring the December quarter GDP figures, scheduled for release post-market hours on Friday. According to a Reuters survey of economists, India’s economy likely showed improvement during this period.
2) Trade Policy Uncertainty
Trump’s recent announcement shifted the implementation of 25% duties on Canadian and Mexican imports to March 4, advancing from the initial April 2 timeline. He also declared a 10% levy on Chinese imports whilst maintaining his stance on 25% tariffs for European Union shipments. These fluctuating trade decisions have led to increased market instability.
3) IT Sector Faces Downturn
Asian markets experienced a decline on Friday, with MSCI Asia ex-Japan dropping 1.21%, following Wall Street’s downward trend after Nvidia’s significant decrease. The technology sector experienced additional pressure as Nvidia’s earnings report sparked negative investor reaction, leading to widespread selling of AI-related stocks, including other “Magnificent Seven” companies. The Nifty IT index fell 3.2%, with notable declines in Persistent Systems, Tech Mahindra, and Mphasis, showing losses up to 4.5%.
4) Dollar Strengthens
The US dollar maintained positions near multi-week peaks against primary currencies amidst growing trade war concerns. The U.S. dollar index reached 107.35 on Friday against six major currencies. This strengthening creates challenges for emerging markets like India, increasing the cost of foreign investments and prompting equity capital outflows.
5) Continuous Foreign Investment Outflow
According to NSDL data, foreign portfolio investors have withdrawn Indian shares worth Rs 1,13,721 crore net in 2025 thus far. In February alone, FIIs have sold Indian equities worth Rs 47,349 crore, while DIIs have invested Rs 52,544 crore net.
