Why did share market fall today?
The drop comes amid tensions sparked by the Trump administration’s new tariff threats against Greenland.
The stock market is in decline: Stock market benchmark indices Sensex and Nifty gained over 1 percent on Tuesday. Sensex fell 1,065.71 points to 82,180.47 and Nifty fell 353 points to 25,232.50. The decline strengthened the downward momentum due to the impact of multiple pressure points coming together. This comes amid tensions sparked by the Trump administration’s new tariff threats against Greenland.
Why did the market fall today?
The decline in the market was seen due to intense selling pressure in market heavyweights Reliance, Bajaj Finance and M&M amid rising geopolitical tensions. Additionally, ongoing weakness in the rupee and persistent foreign fund outflows have adversely affected investor sentiment, PTI reported.
Of the 30 Sensex firms, Eternal fell 4.02 per cent, followed by Bajaj Finance (3.88 per cent), Sun Pharma, InterGlobe Aviation, Trent, Asian Paints, Mahindra & Mahindra and Bajaj Finserv. HDFC Bank emerged as the only winner from this package. He added that the Indian equity market ended today’s session on a decidedly negative note, reflecting a combination of weak global cues, cautious investor positioning and declining risk appetite.
Foreign Corporate Iinvestors (FIIs)
Foreign institutional investors sold stocks worth Rs 3,262.82 billion on Monday, stock exchange data showed. Domestic Institutional Investors (DIIs) continued to be buyers, purchasing shares worth Rs 4,234.30 billion, according to stock exchange data.
Rupee fell to 90.97 against US dollar
The Indian rupee lost 7 paise against the US dollar on Tuesday to close at a (provisional) record low of 90.97; Strong dollar demand from metal importers and persistent foreign fund outflows damaged investor confidence. Forex traders said rising geopolitical uncertainties, including signs of new US easing, were increasing risk aversion and keeping emerging market currencies under pressure.
Global Markets
US futures fell sharply and European markets lost more than 1% on tensions sparked by the Trump administration’s threats of new tariffs on Greenland. France’s CAC 40 index decreased by 1.2% to 8,014.42 points, while Germany’s DAX index decreased by 1.5% to 24,581.44 points. Britain’s FTSE 100 index lost 1.3% to 10,068.04 points. The future of the S&P 500 fell 1.8%, while the future of the Dow Jones Industrial Average fell 1.6%.
