The Indian stock market witnessed a massive fall on Tuesday, causing investors to lose nearly ₹6 lakh crore. Selling dominated the day amid volatility on F&O expiry, with major indices closing in the red. A sharp fall in IT stocks weakened the market, while global cues and a weak rupee added to the pressure.
Heavy fall in Sensex-Nifty
At the end of trading, the Sensex fell 1,068.74 points to close at 82,225.92. Nifty fell 288.35 points to 25,424.65. Nifty slipped below 25,450, which is a clear indication of market weakness. There was pressure on the big market also. Nifty Midcap and Smallcap indices declined by about 1 percent.
The main reason for the decline was the IT sector
IT sector was most affected, Nifty IT index fell by more than 5 percent. Heavy selling was seen in big stocks like Tech Mahindra, Infosys, TCS and HCL Tech. Global changes in AI-based technology and weakness in the US market also impacted Indian IT stocks. Experts say that Artificial Intelligence (AI) is progressing rapidly, which may affect the business of software companies working in old systems. Due to this fear, investors got scared and sold the shares.
Weak rupee and expensive crude oil
The rupee fell 7 paise to 90.96 per dollar in early trading. A strong dollar and rising crude oil prices further increased the pressure. Brent crude rose 1 percent to more than $72 per barrel. For an importing country like India, expensive crude oil increases the concern of inflation and trade deficit.
Impact of global signals and expiry
Slowdown in the Asian market and decline of about 2 percent in the US market also had an impact on the domestic market. US President Donald Trump’s recent trade statement and uncertainty over tariffs increased investors’ concerns. Additionally, weekly derivatives expiry led to traders cutting or rolling over their positions, leading to increased intraday volatility.