Stock market crash: The Indian stock market suffered significant losses across segments in the morning session on Thursday, July 31, with the benchmark Sensex crashing nearly 800 points and the Nifty 50 plunging below 24,650.
A massive selloff engulfed the domestic stock market a day after US President Donald Trump slapped a 25 per cent tariff on most Indian imports to the US.
The Sensex opened at 80,695.50 against its previous close of 81,481.86 and plunged nearly 800 points, or 1 per cent, to an intraday low of 80,695.15. The NSE counterpart Nifty 50, after opening at 24,642.25 against its previous close of 24,855.05, crashed almost 1 per cent to an intraday low of 24,635.00.
The selloff was more intense in the mid and small-cap segments as the BSE Midcap and Smallcap indices plunged up to 2 per cent.
Investors lost over ₹3 lakh crore within the first 10 minutes from the opening bell as the overall market capitalisation of BSE-listed firms dropped to nearly ₹449 lakh crore from more than ₹452 lakh crore in the previous session.
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Why is the Indian stock market falling?
Experts highlighted the following five key factors behind the stock market selloff:
1. Trump’s India tariff
US President Donald Trump imposed a 25 per cent tariff and a penalty on India for buying Russian oil, effective August 1.
Experts believe a 25 per cent tariff on Indian imports to the US may weigh on the Indian stock market sentiment. If tariffs stay at this level for a longer period, it will impact the country’s GDP growth and weaken its currency, further impacting foreign capital inflow.
(This is a developing story. Please check back for fresh updates.)
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
