The Indian stock market benchmarks extended losses to their second consecutive session on Tuesday, December 9, with the benchmark Sensex falling over 700 points and the Nifty 50 dropping below 25,750 during the session.
On Tuesday, the Sensex dropped over 700 points, or almost 1%, to an intraday low of 84,382.96, while the Nifty 50 also fell by 1% to an intraday low of 25,729.35. The mid and small-cap segments continued reeling under massive selling pressure as the BSE Midcap and Smallcap indices crashed by 1.5% each during the session.
The Sensex has crashed over 1,300 points, or more than 1.5%, while the Nifty 50 has lost nearly 2% in just two sessions.
Why is the Indian stock market falling?
According to experts, these five factors could be behind the selloff in the Indian stock market:
1. Uncertainty over India-US trade deal
India and the US remain engaged in trade talks, but a final outcome is yet to be declared. While US trade negotiators will be in India this week to continue trade talks, there are apprehensions that a deal may not be finalised in December due to holidays.
“Trade talks will happen this week, but a deal looks unlikely in December or probably in the first week of January because the US will be in holiday mode. So, for the next 20-25 days, there is no major event that can provide a directional uplift to the market,” Pankaj Pandey, the head of research at ICICI Securities, told Mint.
Meanwhile, as talks are ongoing, US President Donald Trump has threatened to impose additional tariffs on Indian rice imports, sparking fears that the tariff issue may not be resolved anytime soon.
(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.
