Sensex & Nifty Crash: Key Reasons Behind Today’s Market Sell-Off

Stock Market India | India’s equity markets took a big hit on Tuesday as the earnings season rolled on, leaving investors rattled. Major indices stumbled – the Sensex dropped below the 76,000 mark for the first time in seven months, and the Nifty closed uncomfortably close to the 23,000 level. Disappointing corporate earnings and looming uncertainties over President Trump’s trade policies weighed heavily on market sentiment.

Sensex, Nifty Today | The Sensex nosedived by 1.6%, shedding 1,235 points to settle at 75,838.36. That’s its lowest level since June 6, 2024. Meanwhile, the Nifty wasn’t far behind, slipping 1.37% or 320.1 points to end the day at 23,024.65. This massive sell-off wiped out over Rs 7 lakh crore of investor wealth in just one trading session. To add to the gloom, the Nifty Midcap index tanked more than 1,000 points.

Sector-Wise Performance

All sectoral indices ended in the red. Realty and Consumer Durables were hit the hardest, plunging over 4%. Other sectors like PSU Banks, Autos, Private Banks, Pharma, and Metals also took a beating, losing up to 1.7%.

What Triggered This Downturn?

Let’s look at the key reasons behind today’s sell-off:

Earnings Misses: Several big names reported earnings that either barely met or missed expectations. This spooked investors, particularly in sectors where stock valuations were already stretched.
Global Trade Jitters: President Trump’s latest threats of imposing tariffs on Canada and Mexico added fuel to the fire. While China seems to have dodged the bullet for now, this could spell trouble for India. With China’s valuations relatively lower than ours, the absence of new tariffs or sanctions on them could leave India at a disadvantage—much like what we saw back in September-October.

Major Stock Movers

Dixon Technologies: Stock plunged nearly 14% after reporting an in-line quarter, as brokerages like Goldman Sachs and Jefferies flagged concerns over its risk-reward equation, which also dragged down other EMS players like Amber Enterprises and Kaynes Technologies (both fell up to 9%).
Zomato: The food delivery aggregator reported a slowdown in its core business and losses in its Blinkit unit due to aggressive store expansion plans. The stock fell over 10%, pulling down peer Swiggy as well, which experienced its biggest single-day fall since listing.
Newgen Software: Newgen’s stock plummeted as much as 16% after Jefferies downgraded it to “underperform” and slashed its price target by 21%.

All Eyes on Earnings: HDFC Bank and More

Market participants are in a cautious mode ahead of key results from HDFC Bank, Hindustan Unilever, and BPCL, scheduled for release on Wednesday. All eyes are on HDFC Bank, as its performance could set the tone for the banking sector this earnings season.

What’s Next for the Markets?

Today’s sharp sell-off underlines how jittery investors are over stretched valuations, disappointing earnings, and global trade uncertainties. With heavyweight results on the horizon, market participants should stay vigilant, watching closely for signs of stability or more volatility ahead.

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