Sensex Crashes Over 1,000 Points, Nifty Below 22,200 - Why Stock Market Falling Today?

Indian stock market took a dive on Friday with the Sensex fall over 1,000 points and Nifty trading below the 22,200. This marks the 8th consecutive day of losses for the Nifty 50, pushing it into negative zone for the financial year ending March 2025. The market crash today has made investors worried as both major indices are now continuously falling, making investors think is it a correction phase or is it a stock market crash?

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Why is the Stock Market Crashing Today?

The stock market crash today can be attributed to various key factors that have created a storm for the Indian stock market:

1. Trump's Tariff Announcements: US President Donald Trump has announced new tariffs on Mexico, Canada, and China that will take effect from March 4. These trade policy changes have created uncertainty and fear in global markets.
2. Foreign Investors Selling Off: Foreign Portfolio Investors (FPIs) have been selling offloading equities worth Rs 35,694 crore in February alone. In 2025, so far, they've sold stocks worth a massive Rs 1.13 lakh crore.
3. Global Market Weakness: Indian markets are following the downward trend in Asian and US markets. Wall Street closed in the red as investors reacted to disappointing Nvidia results, with the S&P 500 erasing its gains for the year.
4. Strengthening Dollar: US dollar is trading near multi-week highs against worlds major currencies, making Indian equities less attractive to foreign investors. Indian Rupee currently trading at 87.30 against 1 US Dollar.

What's Next for the Stock Market Crash?

As the stock market crash continues, investors are closely watching several developments:

1. GDP Data Release: The December quarter GDP figures are will be released soon. This data may further influence market sentiment in the coming days.
2. IT Sector Under Pressure: The technology sector is facing high pressure as the Nifty IT index falling 3.2%. Companies like Persistent Systems, Tech Mahindra, and Mphasis have seen losses of up to 4.5%.
3. Historic Decline: The market is on track to break a 28-year record by ending five consecutive months with losses. February alone has seen a 5.3% decline, making it the biggest monthly fall since October 2024.
4. Correction Territory: Both the NSE Nifty 50 and BSE Sensex have fallen approximately 15% and 14% respectively from their September 2024 peaks.

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