4 Factors behind today’s market crash

Today, the Indian stock market experienced a significant decline, reflecting a mix of domestic pressures and global uncertainties. Here’s a closer look at the factors causing the downturn:

Key Factors Behind the Decline

1. Corporate Earnings Underperformance: Several prominent companies reported earnings below market expectations for this quarter. Key sectors like technology (IT) and metal saw significant pressure. For instance, tech giants like Tata Consultancy Services (TCS) and Infosys experienced a decline in their stock prices.
2. Foreign Portfolio Investor (FPI) Outflows: The Indian market saw substantial selling pressure from foreign investors. In January 2025 alone, foreign investors pulled out nearly Rs 69,000 crore from the market. This outflow has significantly impacted market sentiment despite strong buying from domestic institutional investors.
3. US Trade Policy Uncertainty: Global markets are jittery due to trade policy uncertainties. Concerns over new tariffs announced by US President Donald Trump have resulted in increased volatility and risk aversion among investors.
4. Strength of the US Dollar: The strengthening US dollar has also contributed to the decline in Indian equities, as global investors prefer to move to more stable shores.
   

   Market Impact

   • Sensex: The BSE Sensex tumbled by 842.4 points, or 1.1%, to hit an intraday low of 75,348.06.
   • Nifty: The broader NSE Nifty index slipped by 265.35 points, or 1.14%, to the day’s low of 22,826.85.