Stock Market Crash: Sensex Plunges 1400 Points Amidst Global Economic Jitters

Indian equity benchmark indices, Sensex and Nifty, are facing a major plunge as they trade lower today. The slump was driven largely by steep losses in banking and IT stocks, as investors reacted to fresh tariff comments from U.S. President Donald Trump and braced for crucial GDP data.

Market Crash Breakdown

• The BSE Sensex fell 1,400 points to end at 73,189.
• The Nifty50 index too, fell below 22,150 level.
• The market capitalisation of BSE-listed companies plunged by ₹9.61 lakh crore to Rs 383.49 lakh crore.

Considering What Has Drove the Market Down

The markets’ downturn was partly driven by several factors:

1. Nervousness Ahead of GDP Data: The prospect of slowing growth and weakening earnings momentum has made investors cautious as they await the release of December quarter GDP data.
2. Yet uncertainty over Trump’s stance on tariffs has added to market volatility: Trump’s announcement of tariffs on imports from Canada, Mexico and China has been a cause of market turmoil.
3. IT Stocks In Deep Red: The Nifty IT index witnessed a notable dip following overnight losses on Wall Street, especially after chipmaker Nvidia's fall.
4. Rising Dollar Index: The U.S. dollar is expected to strengthen further against other currencies, impacting emerging markets including India, pushing up the cost of dollar-denominated foreign investments and leading to capital outflows. The dollar index increased to 107.35.
5. FII Selling Continues: Foreign Institutional Investors (FIIs) have persistently sold Indian shares worth ₹1,13,721 crore net in year 2025.

Sectoral Performance

Almost all sectors traded in the red, with sharp declines in indices like Nifty Bank, Financial Services, Metal, IT, Realty, Consumer Durables, and Oil & Gas that lost up to 1-2.5%. Nifty IT and auto indices slipped almost 3%.

Top Losers:

• Persistent Systems
• Tech Mahindra
• Mphasis

Global Market Impact

Asian markets also took a hit, falling after sell-offs on Wall Street. That was bound by disappointing earnings from Nvidia and worries over U.S. tariffs. South Korean stocks, for instance, plunged more than 3% on worries of a global trade war.

Global Market Overview:

• Futures linked to the S&P 500 were little changed.
• Japan’s Topix fell by 1.7%.
• The S&P/ASX 200 in Australia dropped 0.9%.
• Futures on the Euro Stoxx 50 fell 0.8 percent.

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