Stock Market Crash: Indian stock market became stream, due to these reasons, there

Today, there was a big decline in the Indian Stock Market Crash. After a poor start, the BSE Sensex declined by 1,400 points to 73,201 in the afternoon trading, while the Nifty 50 fell by 426 points and came to 22,119. The reason for this decline is not only seen in domestic, but also in international markets. Come, let’s understand why the market fell today and what are the big reasons behind it.

1. Increased concern due to US economic data

The GDP (GDP) figures from the US remained weak, which increased the concern of investors. America’s economy is slowing down and it is affecting markets around the world. Q4 GDP came only 2.3%, which was less than expected. Due to this, the US markets showed weakness. After which foreign investors (FII) started withdrawing money from India and selling increased in the Indian market.

2. Bazaar with Donald Trump’s tariff

US President Donald Trump has announced a new tariff on Mexico, Canada and China. He said that from March 4, 25% tax will be levied on goods coming from Mexico and Canada. Imports from China will also levy 10% additional duty from China. Also threatened to impose 25% tariffs on the European Union (EU).

Seeing its global trade war, the fear among investors increased, which increased the selling in the market. Due to this, Indian IT companies suffered a setback, because their business is related to the American markets.

3. Foreign investors continue selling

For the last few months, Foreign Institutional Investors – Fiis has been selling in India. In February, FIIS sold shares worth ₹ 46,000 crore, while a total of ₹ 1.33 lakh crore has been sold from January. The effect of this was that there was a huge decline in the market. Domestic investors are finding it difficult to handle this selling. This increased the pressure on the rupee, due to which the price of the rupee can also be weakened.

4. IT sector declined drastically

Today, the shares of IT companies fell the most in the market. The Indian IT sector was affected by the fall of shares of American companies like NVIDIA (NVIDIA). The IT sector declined by up to 4%. The most falling shares include Persistent Systems, Tech Mahindra and Mphasis. In the coming time, fear of recession in America can harm IT companies.

5. Waiting for GDP data

Indian investors are awaiting India’s third quarter (Q3) GDP report, causing uncertainty in the market. Today, India’s economic growth figures will be released. According to Educationals, India’s GDP growth rate is expected to be around 6.3 percent in the October-December 2024 quarter. This is slightly lower than the Reserve Bank of India (RBI )’s estimate of 6.8 percent.

6. Nifty and Sensex continue to fall for 5 months continuously

The Indian market has been in a steady decline for the last 5 months. The Nifty has recorded a 5% decline so far in February. This is the longest decline in 29 years. At the same time, the Sensex has come down 12,819 points from its September 2024 high. This weakened the confidence of investors. New investors are afraid of investing money in the market. It can also affect new listing and IPOS in the market in the coming time.

Do investors need to panic?

The decline in the market is always intimidating, but it is not permanent. Therefore, investors do not need to panic. This can also be a purchase opportunity for Long-Term Investors. Experts advise not to sell their shares in panic, but continue investing in strong companies for a long period and wait for the market stability.

Do take advice of expert before investment

Today’s decline occurred due to many major reasons, such as weakness of the US economy, Trump’s tariff policy, selling of foreign investors and the decline of IT sector. However, market fluctuations continue and this can also be an opportunity for long-term investors. If you are investing, then be patient and take a big decision only after understanding the market move. And before any kind of investment, take advice of experts.