Stock Exchange Dive: Sensex Falls 800 Points to 80,695; Nifty Drops Below 24,650
The Indian stock market is grappling with a tough day, as selling pressure hits all sectors due to rising US tariffs, higher crude oil prices, and concerns about interest rate decisions.
The benchmark indices, the Sensex and Nifty, have experienced significant declines. The Sensex dropped nearly 800 points, and the Nifty slipped below 24,650. The overall market capitalization of BSE-listed companies has fallen by nearly Rs. 5 lakh crore due to investor panic.
Domestic institutional investors have been buying selectively, but their efforts are insufficient to offset the heavy selling from overseas. Foreign institutional investors continue to sell Indian equities, contributing to the market's weakness.
Export-driven sectors, such as IT, pharmaceuticals, textiles, oil and gas, banking, and telecom, are facing sharp declines. Fears that new tariffs could impact overseas earnings are weighing heavily on these sectors. Oil and gas stocks are falling due to rising global crude prices.
IT companies, which had previously benefited from the weak rupee and global demand, are now experiencing selling pressure as investors reduce exposure to export-reliant businesses. Mid-cap and small-cap indices have faced sharper declines of up to 2 percent.
The heavyweight stock Infosys inched up slightly to Rs. 1,519, outperforming some peers but still far from its 52-week high. Reliance Industries fell to Rs. 1,409.90, and Tata Steel slipped to Rs. 161.35.
The overall market breadth remains weak, with the number of declining stocks exceeding advancing ones. All major sectors are open in the red today.
The US has imposed steep import tariffs of around 25% on Indian goods, leading to market losses, especially in sectors like pharma, healthcare, and metals. This tariff action has contributed to weak investor sentiment and foreign institutional investor (FII) outflows, pressuring benchmark indices like the Nifty and Sensex downward.
Meanwhile, crude oil prices remain a focus due to their inflationary and cost impact on India’s economy and equity markets. OPEC+ recently hiked oil production volumes, which may ease crude prices somewhat; however, forecasts expect crude prices to range between $60-$70 per barrel with potential supply gluts by Q3/Q4 2025. Since India is a major crude oil importer, fluctuations in oil prices directly affect input costs for industries and overall inflation, thereby influencing stock market performance.
Despite these near-term headwinds, longer-term outlooks for India’s economy and markets remain positive, driven by strong demographic trends, infrastructure improvements, policy stability, and a push towards energy transition that reduces oil intensity in GDP. The Reserve Bank of India’s accommodative monetary policy, including recent rate cuts, also aims to support economic activity and market confidence.
In summary, US import tariffs on Indian goods and rising crude oil prices are creating immediate pressure on equity markets through trade concerns and investor caution, while crude oil price trends continue to be a key factor influencing cost structures and inflation expectations. However, underlying macroeconomic strengths and policy support are expected to sustain India’s market appeal over the medium term.
In the early session, the Sensex is trading near 80,870, down almost 0.75 percent, and the Nifty is hovering around 24,668, down 0.73 percent. Gift Nifty futures indicate bearish sentiment, dropping more than 120 points.
Finance-related concerns have escalated as the Indian stock market faces a challenging day, with selling pressure impacting all sectors. Investing in the market appears questionable due to rising US tariffs, increasing crude oil prices, and worries about interest rate decisions.
The decline in the benchmark indices, such as the Sensex and Nifty, is attributed to domestic and foreign institutional investors' selling of Indian equities, particularly in export-driven sectors like IT, pharmaceuticals, and oil and gas. The stock-market weakness is further exacerbated by the fear of new tariffs affecting overseas earnings.
