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India Today
5 days ago
- Business
- India Today
Sensex tumbles 500 points: Why is the stock market down today?
Benchmark stock indices fell sharply in early trade on Friday, as rising trade tensions between India and the United States unnerved investors. The S&P BSE Sensex plunged over 500 points and the NSE Nifty50 slipped more than 150 points, dragged down by foreign institutional selling, a weakening rupee, and fears of further escalation in the tariff standoff with 10:07 am, the Sensex was down 496.21 points at 80,127.05, while the Nifty stood at 24,444.55, lower by 151.60 selloff came after US President Donald Trump ruled out any trade talks with India until pending issues are resolved, a day after announcing a fresh 25% tariff on Indian exports. The new duty, which takes total tariffs to 50%, is scheduled to come into effect from August 27. The White House's tougher stance on India has triggered a fresh wave of concern on Dalal Street, especially as broader market signals remain weak.'The market continues to be technically and fundamentally weak. Continuous lower lows on the Nifty is technically a weak sign. From the fundamental perspective, there are no indications yet of a sharp uptick in earnings for FY26,' said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.'These weak indicators, along with the relatively high valuations in India, are triggering sustained selling by the FIIs,' he added. 'FIIs have sold on all trading days of August so far, taking their total cash market selling in August to Rs 15,950 crore.'Thursday's late-session rebound had briefly lifted sentiment, but traders remain jittery. 'Yesterday's sharp 250-point recovery in the Nifty was caused by short covering triggered by the strong buying by DIIs of Rs 10,864 crores,' Vijayakumar said. 'In the present context of negative sentiments caused by the tariff skirmishes between India and the US, FIIs are likely to continue selling. The only saving grace is the sustained DII buying which remains strong.'Adding to the pressure are macroeconomic headwinds including a volatile rupee, weak corporate earnings, and the RBI's hawkish tone in its latest monetary policy.'Volatility and choppiness are expected in today's trade amid multiple triggers,' said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd. 'These include fresh US tariffs on India—doubled to 50% by President Trump, with the extra 25% effective 27 August—FII outflows of over Rs 12,500 crore this week, a weak rupee near 87.78, and uninspiring Q1FY26 earnings.''The RBI has held the repo rate at 5.5% with a neutral stance seen as hawkish. Key Nifty support stands at 24,344; as long as it holds, buying on dips is favoured,' he stocks in focus, TCS was in the spotlight on reports of a possible salary hike for junior staff, while Adani Power rose after securing a Letter of Intent for a 2,400 MW thermal plant. Jindal Stainless gained on the back of strong earnings, while Maruti Suzuki was Tapse's top buy, with a potential breakout toward 14, no sign yet of de-escalation on the trade front, markets are likely to remain volatile heading into the next week. Sustained domestic institutional flows may cushion the fall, but pressure from global uncertainty and foreign outflows is expected to persist.- EndsMust Watch
India Today
09-05-2025
- Business
- India Today
Markets volatile but no crash on D-Street amid Indo-Pak tensions. 3 things to know
It was a tense morning on Dalal Street. News of escalating tensions between India and Pakistan sent a shiver through the market, triggering a sharp sell-off right at the opening Sensex dropped over 500 points within minutes, and the Nifty wasn't far behind. But despite the panic-inducing headlines, the market didn't spiral into chaos. At around 9:48 am, the Sensex was down over 630 points and the Nifty was trading just above 24, markets remain extremely volatile today, there was no outright crash on Dalal Street. Here are 3 reasons why:CONFIDENCE IN INDIA'S MILITARY EDGE HELPED CALM NERVES Investors were spooked by the conflict, but many also took comfort in India's conventional military strength. 'Under normal circumstances, the market would have suffered deep cuts,' said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.'But India's superiority in conventional warfare has limited fears of a prolonged conflict.'In other words, while markets hate uncertainty, they also respond to perceived control—and right now, investors seem to think India has the upper ECONOMIC INDICATORSEven as the headlines rattled nerves, the numbers told a different story. India's economy is still growing strong, interest rates are trending lower, and inflation seems to be under control. 'The market is inherently resilient,' said Vijayakumar, pointing to a global backdrop that's increasingly tilting in India's favour—especially with the US and Chinese economies showing signs of cooling. All of this has helped cushion the INFLOWS STILL STRONGadvertisementPerhaps the biggest show of confidence has come from foreign investors. Over the past sixteen trading sessions, they've continued to pump money into Indian equities. That kind of steady inflow usually signals a deeper trust in the country's economic story—and it's a key reason the markets didn't go into free fall.'Investors should not panic and exit from the market now,' Vijayakumar added. 'Remain invested, monitor developments and wait for the dust to settle.'Of course, the volatility isn't over yet. The India VIX jumped more than 5% early on, a clear sign that the market remains on edge. And technically speaking, there's more turbulence James of Geojit pointed out that the Nifty has broken below a key moving average, hinting at possible dips towards 23,460. But he also sees value buying kicking in if the index slips near 23,550—a possible silver lining for those looking to enter or add on now, the takeaway is simple. The mood remains tense, but the situation on Dalal Street has not spiralled out of control. Investors are watching with caution, but they're not running away.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
