Sensex crashed 800 points, Nifty drops below 24.650; Why does the Indian stock market fall? Explain with 5 key factors | Einsmark news
The stock market accident: The Indian stock market suffered significant losses on segments on Thursday, July 31, with the benchmark Sensex falling near 800 points and the Nifty 50 falling below 24,650. A massive sales engulfed domestic stock market a day after US President Donald Trump slapped a 25 percent tariff on most Indian imports to the US. The Sensex opened at 80,695.50 compared to the previous closure of 81,481.86 and dropped nearly 800 points, or 1 percent, to a low of 80,695.15. The NSE counterpart Nifty 50, after being opened at 24,642.25 compared to the previous closure of 24,855.05, crashed nearly 1 percent to a low of 24,635.00. The sale was more intense in the middle and small cap segments as the BSE midcap and smallcap indices dropped to 2 percent. Investors lost more than £ 3 Lakh-Crore within the first ten minutes of the opening bell, as the overall market cap of BSE-listed firms in the previous session dropped to nearly £ 449 Lakh Crore from more than £ 452 Lakh Crore. Follow all direct updates of the Indian stock market here, why is the Indian stock market falling? Experts highlighted the following five key factors behind the sale of stock market: 1. Trump’s Indian tariff US President Donald Trump imposed a 25 percent rate and a fine on India for the purchase of Russian oil, with effect from August 1. Experts believe a 25 percent tariff on Indian imports to the US could weigh the Indian stock market sentiment. If rates remain at this level for a longer period, it will affect the country’s GDP growth and weaken its currency, further affecting the inflow of foreign capital. “The higher rates on India versus expectations may weigh on capital flow. FII flow has now become critical in shaping market outcomes amid heavy promoter sales and delayed DII flow. The direct impact is likely to be on shares/sectors where the US is the marginal price and pharma, tiles, etc. All market -related news here read more stories by Nishant Kumar Disclaimer: This story is for educational purposes only.