Fresh global uncertainty triggered by Donald Trump’s renewed tariff threat and France’s firm stance on not joining the proposed Peace Board has rattled stock markets worldwide. The impact was clearly visible in India, where benchmark indices witnessed a sharp sell-off, wiping out massive investor wealth.

On Tuesday alone, Indian stock market investors lost more than ₹9 lakh crore, while losses over the last two trading sessions have crossed ₹11.50 lakh crore.

Heavy Fall in Sensex and Nifty

The Indian equity market remained under pressure throughout the session.

• The Sensex, the benchmark index of the Bombay Stock Exchange, fell by over 1,073 points during the day. At around 3:10 pm, it was down 960.77 points at 82,280.61, after touching an intraday low of 82,147.52.

• Over the last two days, the Sensex has declined by more than 1,300 points.

Meanwhile, the Nifty 50 of the National Stock Exchange dropped 351.10 points to trade near 25,235.95, hitting an intraday low of 25,233.70. Market experts warn that further volatility cannot be ruled out in the coming sessions.

Why Did the Market Fall? Key Reasons Explained

Market analysts point out that the decline was not due to a single factor, but a combination of global and domestic concerns:

1. Trade war fears
   Uncertainty over US tariff policies and rising tensions between the US and Europe dented global risk appetite, dragging down equities worldwide, including India.

2. Sustained FII selling
   Foreign Institutional Investors (FIIs) continued to offload shares. On Monday alone, FIIs sold equities worth ₹3,262.82 crore, marking nearly the tenth straight session of net selling this month.

3. Mixed Q3 earnings
   Corporate earnings for the December quarter have been mixed. IT stocks came under pressure after weaker-than-expected guidance from Wipro, pulling the IT index down by over 1 percent.

4. Weak global cues
   Asian markets largely traded lower. Japan’s Nikkei, China’s Shanghai Composite, and Hong Kong’s Hang Seng slipped, while Wall Street futures also indicated weakness.

5. Rising volatility (India VIX)
   India VIX jumped over 4 percent to 12.34, signalling rising nervousness among investors.

6. Rupee depreciation
   The rupee weakened by 8 paise to 90.98 against the US dollar, weighed down by foreign fund outflows and a strong dollar.

7. Awaiting US court decision on tariffs
   Investors are cautious ahead of a possible US Supreme Court ruling on Trump-era tariffs, which could significantly alter global trade dynamics.

8. Firm crude oil prices
   Brent crude edged up to around $64 per barrel, raising concerns over inflation and fiscal pressure for India.

9. Nifty weekly expiry
   The approach of the Nifty’s weekly derivatives expiry added to intraday volatility due to position unwinding and rollovers.

10. Fall in PSU bank stocks
    Public sector bank stocks declined over 1 percent, with stocks like Central Bank of India and Punjab & Sind Bank falling up to 3 percent.

₹9 Lakh Crore Wiped Out in a Day

The sharp fall directly hit investor wealth. The total market capitalisation of the BSE dropped from ₹4,65,68,777.25 crore to ₹4,57,15,068.67 crore on Tuesday. This translates into a loss of ₹9,02,669 crore in a single trading session.

Over the last two days, cumulative losses have crossed ₹11.50 lakh crore, underscoring the scale of the market correction.

What Lies Ahead?

Experts advise investors to remain cautious in the near term, as global trade tensions, foreign selling, and macroeconomic uncertainty could keep markets volatile. Long-term investors, however, are being advised to focus on fundamentals rather than short-term fluctuations.