There was a huge fall in the Indian stock market on Tuesday, due to which investors lost about Rs 6 lakh crore. Selling dominated the day amid volatility on F&O expiry and major indices closed in the red. A sharp fall in IT stocks broke the back of the market, while global cues and rupee weakness further increased the pressure.
Strong decline in Sensex-Nifty
At the end of trading, the Sensex fell 1,068.74 points to close at 82,225.92. Whereas Nifty fell by 288.35 points to the level of 25,424.65. Nifty slipped below 25,450, giving a clear indication of weakness in the market. The broader market also remained under pressure. Nifty Midcap and Smallcap indices fell by about 1 percent each.
IT sector became the main reason for decline
The IT sector was hit the most. Nifty IT index fell more than 5 percent. Sharp selling was seen in big stocks like Tech Mahindra, Infosys, TCS and HCL Tech. The impact of changes related to AI based technology globally and weakness in the American market was also visible on Indian IT stocks. Experts say that Artificial Intelligence (AI) is progressing rapidly, which may affect the business of software companies working in the old way. Due to this fear, investors are nervous and are selling shares.
Rupee weakness and expensive crude oil
Rupee fell 7 paise to 90.96 per dollar in early trade. A strong dollar and rising crude oil prices added pressure. Brent crude rose 1 percent to above $72 a barrel. For an importing country like India, expensive crude oil raises concerns about inflation and trade deficit.
Global signals and effect of expiry
The slowdown in Asian markets and a decline of about 2 percent in American markets also affected the domestic market. US President Donald Trump’s recent trade statements and uncertainty over tariffs increased investors’ concerns. Additionally, weekly derivatives expiry led to traders cutting or rolling over positions, leading to increased intraday volatility.
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