“Sensex Falls 1,200 Points: Why Is The Market Crashing Today?”

“Sensex Falls 1,200 Points: Why Is The Market Crashing Today?”

The Indian stock market witnessed a steep decline, with Sensex falling 1,200 points and Nifty dropping to 23,870. Here are the main reasons behind the market crash:

  1. US Fed’s Rate Outlook: The US Federal Reserve cut rates by 25 basis points but signaled fewer rate cuts in the future. This caused global markets, including India, to tumble.
  2. Foreign Investors Selling: Foreign Institutional Investors (FIIs) sold over ₹8,000 crore worth of equities, influenced by the strong US dollar and rising bond yields.
  3. Weak Rupee: The Indian rupee hit a historic low of 85.3 against the dollar, deterring foreign investments and adding inflation concerns.
  4. Economic Challenges: India’s trade deficit hit a record high, and economic growth showed signs of slowing, raising fears about future stability.
  5. Corporate Earnings Uncertainty: Weak corporate earnings in Q1 and Q2 created doubt about recovery, keeping market sentiment cautious.

As markets grapple with these pressures, investors hope for a turnaround in the coming quarters.

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P.I. Staff Writer