Stock market closing: Sensex crashes over 1,400 points, Nifty down 420
Stock market closing: The stock market crashed during the trading session on Friday, with IT, telecom, and auto stocks plummeting the most.
Stock market closing: The stock market crashed during the trading session on Friday, with IT, telecom, and auto stocks plummeting the most. The indices closed deep into the red.
The benchmark BSE Sensex closed 1,414.33 points or 1.90% into the red, reaching 73,198.10. The broader NSE Nifty was down by 420.35 points down or 1.86% in the red, reaching 22,124.70.
Why did the stock market crash?
“The market witnessed a sharp sell-off today, driven by multiple global and domestic factors,” said Abhishek Pandya, Research Analyst at StoxBox.
The factors Pandya listed out are as follows:
- Weakened investor sentiment after US President Donald Trump reaffirmed that the previously paused 25% tariffs on imports from Mexico and Canada would take effect on March 4, along with an additional 10% duty on Chinese imports due to the ongoing fentanyl opioid crisis.
- Concerns over India's Q3 GDP data, expected to show weaker urban consumption along with a slowdown in real estate activity
- The IT index tumbled, following data indicating that US weekly jobless claims rose more than expected last week, raising concerns about a potential slowdown in the world’s largest economy.
Meanwhile, Vikas Jain, head of research at Reliance Securities said that “the Dollar Index reaching a one-month high of 107, and a more than 8% drop in Nvidia’s shares, which failed to meet analyst expectations” are also contributors.
“The US market fell 2.5%, closing at a five-month low, while US Treasury yields rose following President Trump's new tariff threats,” he added. “The updated fourth-quarter economic growth report was decent but not enough to ease investor concerns.”
Yet another contributing factor comes to a sell-off from the side of foreign investors.
Which stocks fell the most?
Among the Sensex stocks, Tech Mahindra fell the most by 6.19%, closing at ₹1,488.90. This was followed by IndusInd Bank, which fell 5.48%, closing at ₹988.95, and Mahindra & Mahindra, which fell 5.21%, closing at ₹2,584.00.
Only one out of the 30 Sensex stocks was in the green. It was HDFC Bank which was up 1.86%, closing at ₹1,731.10.
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How did individual sectors perform?
Among the Nifty sectoral indices, the Nifty IT Index fell the most by 4.18%, reaching 37,318.30. This was followed by the Nifty Auto Index, which fell 3.92%, reaching 20,498.60, and the Nifty Midsmall IT & Telecom Index, which fell 3.72%, reaching 8,780.80.
The Nifty IT Index was dragged down by Tech Mahindra (6.44% down), Wipro (5.43% down), and MphasiS (5.31% down).
The Nifty Auto Index was dragged down by Ashok Leyland (5.11% down), Mahindra & Mahindra (4.82% down), and TVS Motor Company (4.43% down).
The Nifty Midsmall IT & Telecom Index was dragged down by Zensar Technologies (7.50% down), Zensar Technologies (6% down), and Tata Technologies (5.97% down).
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How did the stock market open today?
The stock market plunged into the red as the trading session began today, with mid and small cap IT and telecom stocks, along with metal and auto stocks, falling the most.
At 9:20 am IST, the benchmark BSE Sensex plummeted by 746.12 points or 1%, reaching 73,866.31. The broader NSE Nifty opened 221.15 points down or 0.98% in the red, reaching 22,323.90.
Among the 30 Sensex stocks, IndusInd Bank fell the most upon opening by 4.07%, trading at ₹1,003.75. This was followed by Mahindra & Mahindra, which fell 2.86%, trading at ₹2,648.00, and NTPC, which was down by 2.61%, trading at ₹307.50
All of the Sensex stocks were in the red.
Among the Nifty sectoral indices, the Nifty Midsmall IT & Telecom Index fell the most by 2.52%, reaching 8,890.50. This was followed by Nifty Metal, which fell 2.10, reaching 8,159.80, and Nifty Auto, which was down 1.98%, reaching 20,913.80.
