On 3 February, stock market has face the huge losses in trade and falls over 700 points of Sensex and 300 points of Nifty. Nifty 50 reach to level below 23,250 in today’s intraday trade due to weak global cues and concerns of week allocation in Budget 2025. Stock Market has saw buying interest towards the end of the session and helps to reach it above to crucial levels. The Nifty 50 end the session with drop of 0.52% close at 23,361 and Sensex end at 77,186. This Stock Market Crash Today marks a 0.46% drop than Saturday.
Why Stock Market Crash Today
The decline in the stock market was seen across Asian markets after US President Donald Trump announced tariffs across multiple countries. US posses a 25% tariff on imports from Mexico and Canada, and posses 10% tariff on Chinese goods. It will be effective from 4 February.
The possibility of tariffs lead to trade war has falls the spirit in market and reduce investors confidence. Indian rupee 54 Paise has touch a low of 87.16 against US dollars in early trade. RBI’s MPC has scheduled to meet on Wednesday and decide the key interest rates applicable in the economy.
Related: Indian stock market faces setback due to slowdown in economic growth
Foreign Investor selling puts pressure on Markets
Foreign Investor have sells Indian stocks in few months
- FPI sold Rs 1 lakh crore worth of equities in January
- After the budget, investors will watch to see if this selling trend continue
Director of Equity Strategy at WealthMills Securities, Kranthi Bathini, has said that Foreign investors reduce trade participation before the budget. Now, there is a need to see how FPIs behave today. It is important to determine if Stock Market Crash Today or recover further. The tariff announcements by Trump have add more pressure on Indian markets.
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