Sensex and Nifty 50 been under February 23 :
the stock market crash: sluggish growth, a renewed concern about excessive inflation, the London cash gold contract default, the hawkish US Fed, and the buy China, sell India tirade.
Stock market crash: The Indian stock market has been held by bears for the past thirteen days in a row, even if the Nifty 50 index has managed to hold above the critical support level of 22,750 to 22,800. While the Nifty 50 index ended the thirteen sessions lower, the BSE Sensex ended the thirteen sessions lower.The 50-stock index has dropped 3,482 points (from 26,277 to 22,795) and the BSE Sensex has dropped 10,677 points (from 85,978 to 75,311) from the record highs set by the BSE Sensex and the Nifty 50 index on September 26, 2024.
Last week, bulls attempted to outsmart bears by starting to buy in the small-cap and mid-cap segments, but on Friday, they gave in to the pressure from sellers. Despite early gains, Friday’s intraday volatility in broader markets was substantial. The Nifty Midcap 100 and the Small-cap indices ended the day down 1.32% and 0.7%, respectively, after retreating more than 2% from their peak values.
The BSE recorded an advance-decline ratio of 0.75, indicating that market breadth remained negative. But with Friday’s steep decline in the US stock market, the Dalal Street bulls must be feeling quite happy.
Also Read : The US stock market fell, but why? 2025’s worst day
Following news that suggested businesses and consumers were becoming concerned about President Donald Trump’s agenda, the US stock market plummeted on Friday. For the worst day in two months, the S&P 500 fell 1.7%. The Nasdaq composite fell 2.2%, while the Dow Jones Industrial Average fell 748 points, or 1.7%. Following a slew of lower-than-expected economic reports, the losses picked more speed throughout the day.
Experts in the stock market claim that the declining sentiment in the global market is the reason behind the decline in the Indian stock market. The main causes of the weak global cues are economic uncertainty and concerns about a trade war sparked by Trump’s tariff strategy. But the ongoing tariff tirade, which has lasted for about two months, has given rise to other worries, which is enough to hurt feelings.
They claimed that some of the key factors that have continued to dominate the latest stock market fall are slow growth, a revived concern about high inflation, the rumors of a London cash gold contract default, the minutes of the FOMC meeting indicating a hawkish US Fed on rate cuts, etc.