Stock market fell today: Nifty 50 and BSE Sensex fell on Tuesday due to weak global cues and fall in IT stocks as well as fresh tariff threats from US President Donald Trump. While Nifty 50 fell over 280 points, BSE Sensex fell below 82,300. At 1:13 pm, Nifty 50 was trading at 25,427.75, down 285 points or 1.11%. BSE Sensex was down 1,029 points or 1.24% at 82,265.74.Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd, says, “President Trump’s address today and the message he will convey will be keenly watched by the markets globally. In view of the changes in tariffs following the US Supreme Court decision that the EU has put the deal with the US on hold and Trump’s warning to countries backing out of the deal indicates that the tariff drama is overkill for economies and markets. We will have to wait and see how this drama plays out. “Meanwhile, tech stocks continue to trend weak, stemming from potential AI impact. Weakness in ADRs of Indian IT companies suggests this segment will remain under pressure.” “The shift in FII strategy in India is a positive trend in the market which will have a significant impact on the market. FIIs have been buyers in ten of the last seventeen trading sessions which reflects their new interest in India. The improvement in corporate earnings in India is the major reason for this shift in FII stance. Given the strong macros of the Indian economy and the improvement in corporate earnings, the FII buying trend may continue. Therefore, sectors where FIIs have been buyers, such as capital goods and financials, will remain resilient and IT sectors in which they have been sellers, will remain weak. So, keep an eye on stocks in these segments.”The crash has caused a loss of about Rs 4.6 lakh crore in investors’ wealth, reducing the total market capitalization of BSE to about Rs 464 lakh crore.
Why is the stock market falling today? top reasons
1) Fresh blow to IT stocksTechnology counters such as Tata Consultancy Services, Infosys and HCL Technologies came under intense selling pressure after Anthropic announced that its cloud code tool could help modernize legacy systems built on COBOL.Infosys shares fell nearly 3%, while HCL Technologies, Mphasis and Persistent Systems fell more than 2% each. TCS, Tech Mahindra, Wipro and other IT stocks fell around 2%, leading the Nifty IT index down over 2% to 30,849.05 around 9:20 am.Anthropic said Monday that cloud code can automate much of the exploration and analytical work involved in upgrading COBOL-based systems. This development also triggered a massive selloff in the US markets and IBM fell 13% overnight.COBOL, short for Common Business-Oriented Language, was developed in the late 1950s and is widely used for business data processing, including payment systems and retail transactions. Anthropic estimates that approximately 95% of ATM transactions in the United States still rely on COBOL, highlighting the potential for artificial intelligence-driven cost efficiency in this area.2) New tariff warning from TrumpInvestor concerns increased after US President Donald Trump signaled a tough trade outlook. In a post on Truth Social on Monday, Trump warned that countries that try to “game” the recent court ruling will face increasingly higher tariffs.His comments came following Friday’s ruling by the United States Supreme Court that invalidated tariffs imposed under the International Emergency Economic Powers Act. Responding to the decision, Trump said he would instead move to impose a 15% universal tariff under Section 122 of the Trade Act of 1974.3) America’s technological defeat spreads to AsiaAsian stock markets weakened in early trade on Tuesday after a sharp fall on Wall Street hit global sentiment. Markets were under pressure due to uncertainty over Trump’s tariff direction as well as rising geopolitical risks.MSCI’s broadest index of Asia-Pacific shares outside Japan, the MSCI Asia-Pacific ex-Japan Index, gave up earlier gains after a six-session rally and was last trading 0.2% lower, with South Korean shares in the red.In contrast, Japan’s Nikkei 225 rose 0.7% when trading resumed after a public holiday. S&P 500 e-mini futures rose 0.1%.Overnight in the United States, the S&P 500 fell 1.0%, erasing gains recorded over the past week. Fears that artificial intelligence could disrupt employment and profitability in software and other sectors dragged the Nasdaq Composite down 1.1%.4) Rupee weakened against dollarThe Indian rupee slipped 0.07% to 90.95 against the US dollar on Tuesday. Currency depreciation could prompt foreign investors to withdraw funds, putting pressure on equities. Additionally, the weak rupee increases the cost of imports, especially crude oil, potentially increasing inflation and reducing profit margins for companies dependent on imported inputs. This dynamic could weigh on the earnings outlook and investor confidence.5) Concern over possible US action against IranGeopolitical tensions have also led to uncertainty. While fresh talks between the United States and Iran are set to take place in Geneva, Donald Trump said on Friday he is considering the possibility of an attack if Tehran fails to reach a deal with Washington. “I guess I can say I’m considering it,” he said in response to a reporter’s question.Reacting to the statement, Iran’s Foreign Ministry spokesman Esmail Baghai said on Monday that any US military action, even limited strikes, would be considered an “act of aggression” and would be responded to.(Disclaimer: The recommendations and views given by experts on the stock market, other asset classes or personal finance management are their own. These opinions do not represent the views of The Times of India)