Big Fall in Stock Market: What Happened Today?
Big Fall in Stock Market: On April 25, the Sensex dropped by 1,075 points, or 1.35%, hitting a low of 78,726. Nifty 50 also crashed by 368 points, or 1.5%, reaching 23,879 during the day. This sharp fall came despite strong performance in global markets like the US and Asia.
Midcap and smallcap stocks were hit even harder, with both indices falling over 3%.
This crash wiped out Rs.10 lakh crore of investor wealth as the total market value of BSE-listed companies dropped from Rs.430 lakh crore to Rs.420 lakh crore.
Also Read: Nifty Falls Below 24,000, Sensex Crashes 900 Points: What’s Causing the Market Panic?
Why Did the Indian Stock Market Crash?
1. Terror Attack in Pahalgam Creates Tension
A recent terror attack in Pahalgam has increased tensions between India and Pakistan. This has made investors nervous about future political developments. Prime Minister Narendra Modi promised strict action, which has added to market uncertainty.
2. Profit Booking After Recent Rally
Experts say investors are selling stocks to book profits after a strong rally in recent weeks. The market had already gained over 8% recently, and with no major positive news, some investors decided to cash out.
3. Global News Had Less Impact
Even though US markets like Nasdaq and S&P 500 saw strong gains, and Asian markets like Japan’s Nikkei and Korea’s Kospi performed well, the Indian market didn’t follow the trend. Local concerns over geopolitical issues took priority.
What Experts Say
Pankaj Pandey (ICICI Securities): "People are anxious about rising tensions with Pakistan. Still, experts believe this may not harm long-term market trends."
VK Vijayakumar (Geojit Investments): "The real worry is how India will respond to the terror attack and what impact it might have."
Also Read: Stocks to Watch Today as Global Markets Signal Uptrend