Sensex Breaks 7-Day Winning Streak, Sinks 728 Points; Key Points Why Stock Market Fell Today
Indian equity indices ended their 7th day of winning streak to settle in the red on Wednesday, led by profit booking
Sensex Today: Indian equity indices snapped their seven-day winning streak on Wednesday, closing in the red as investors engaged in profit booking across sectors. The BSE Sensex declined 728.69 points or 0.93% to settle at 77,288.50, after trading within a range of 78,167.87 (high) and 77,194.22 (low) during the session.
The NSE Nifty50 fell 181 points or 0.77%, closing at 23,486.85. The index touched an intra-day high of 23,736.50 before slipping to a low of 23,451.70.
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In the broader markets, the Nifty Midcap100 index declined 0.62%, while the Nifty Smallcap100 index dropped 1.07%. Barring Nifty Auto, all sectoral indices on the NSE ended the session in negative territory.
The BSE Sensex tumbled over 800 points, dropping below the 77,200 level, while the Nifty50 declined 200 points, slipping below 23,500 around 3 PM. This pullback comes after a seven-session rally, during which Sensex surged 4,189 points and Nifty climbed 1,271 points. Apart from auto stocks, all sectoral indices were in the red.
Why is the Stock Market Down Today?
Uncertainty Over US Tariffs
Investors remain cautious about potential US tariffs under President Donald Trump’s administration. While reports suggest that not all proposed tariffs will be enforced by the April 2 deadline, the lack of clarity has led to global market volatility. If trade tensions escalate, Indian exports, particularly in sectors like IT and pharmaceuticals, could be affected.
Profit Booking After a Strong Rally
The Nifty and Sensex gained nearly 5.7% over the past seven sessions, turning positive for the year. Investors are now booking profits, leading to a market pullback. The sharp rise in valuations within a short period has also prompted cautious selling in heavyweight stocks.
Oil Prices at a Three-Week High
Crude oil prices rose on Wednesday due to supply concerns, as the US tightened restrictions on Venezuelan and Iranian oil exports. A larger-than-expected drop in US crude inventories further pushed prices higher, adding to inflationary risks.
Decline in Index Heavyweights
Weakness in banking, finance, and IT stocks weighed on the market. HDFC Bank, Infosys, Axis Bank, Kotak Mahindra Bank, Reliance Industries, Bajaj Finance, and ICICI Bank together dragged Sensex down by 440 points. IT stocks remained under pressure due to global macroeconomic uncertainties.
Global Cues
Wall Street stocks ended higher on Tuesday, supported by gains in Apple and a dip in Nvidia, as investors assessed consumer sentiment data and speculated on a more flexible trade policy from the Trump administration expected next week.
US President Donald Trump indicated on Monday that automobile tariffs would be implemented soon, but also suggested that not all proposed tariffs would be enforced in an announcement on April 2, which Wall Street is keenly watching.
As of 9:30 a.m. Tokyo time, S&P 500 futures were largely unchanged, while other global indices showed positive movement. Hang Seng futures rose by 0.6%, Japan’s Topix gained 0.4%, and Australia’s S&P/ASX 200 climbed 0.7%. Euro Stoxx 50 futures also rose by 0.2%, reflecting a positive sentiment across global markets.
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