Indian Stock Market Crashes Amid Global Uncertainty

Stock market crash today (AI image)Stock market crash today:Nifty50andBSE Sensextanked in trade on Thursday after three consecutive days of gains. While Nifty50 went below 25,450, BSE Sensex crashed over 1,400 points in intraday trade.Nifty50 ended the session below 25,500, down 365 points or 1.41%.BSE Sensex closed at 82,498.14, down 1,236 points or 1.48%,The sell-off significantly impacted investor wealth, with the total market capitalisation of companies listed on the Bombay Stock Exchange shrinking by Rs 6,79,210.1 crore to Rs 4,65,22,014.57 crore ($5.13 trillion).Why did stock market crash today? Top reasons1) Uncertainty over US Fed rate decisionsMinutes from the January 27–28 meeting of the Federal Reserve revealed divergent views among policymakers.Several members flagged the possibility of further increases in borrowing costs if inflationary pressures persist, while others were divided on the timing and necessity of additional rate reductions.A postponement of rate cuts - or a potential hike - by the Federal Reserve tends to weigh on Indian equities. Elevated US bond yields enhance the appeal of US assets compared with emerging markets, which can prompt foreign portfolio investors to pull funds from India.by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeConscient Elaira: 3 BHK Homes@Sec 80, GurgaonConscient ElairaLearn MoreUndoSuch outflows can exert pressure on the rupee and tighten liquidity conditions domestically.2) Climbing crude oil pricesCrude prices in Asian trade edged higher on Thursday amid ongoing diplomatic efforts between the US and Iran to ease tensions surrounding Tehran’s nuclear programme, even as military activity intensified in a strategically important oil-producing region. Brent crude gained 24 cents, or 0.3%, to $70.59 per barrel by 0415 GMT, while West Texas Intermediate rose 28 cents, or 0.4%, to $65.47.3) Ongoing geopolitical strainsHeightened tensions in the Middle East have added to investor unease. According to AFP, the United States has significantly reinforced its military presence in the region, deploying warships, combat aircraft and aerial refuelling systems, positioning itself for a prolonged operation against Iran if President Donald Trump chooses to proceed.Meanwhile, on the Russia–Ukraine front, two days of peace discussions in Geneva ended on Wednesday without any decisive outcome.4) Profit-taking at higher levelsThe fall also followed a three-session rally in the frontline indices, prompting investors to lock in gains at elevated valuations. The Nifty and Sensex had advanced steadily before retreating in the latest session amid selling pressure.Anand James, Chief Market Strategist at Geojit Investments Ltd, said the market could attempt to approach the 25,900 mark, with a reasonable chance of testing 26,050.However, he indicated uncertainty about whether momentum would sustain beyond those levels, suggesting that weakness could pull the index back toward 25,728.There are also lurking worries about the prospect of the IT sector's future with the advent of AI.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)