Investors Rattled by 5-day Sensex-Nifty slump

Investors Rattled by 5-day Sensex-Nifty slump

Concerns are mounting among investors as the stock market continues its downward spiral. The Sensex and Nifty have plummeted for five consecutive days, creating significant instability. Both major indexes have fallen over 3%, with a particularly sharp 1.5% drop on Tuesday alone. This downturn has wiped out ₹10 lakh crore in investor wealth by Tuesday, and a staggering ₹17 lakh crore since February 4th. Notably, the February decline has already surpassed January's losses, and the Sensex has weakened significantly even before the halfway point of the month.  

The key question is: what's driving this market downturn? The primary culprits appear to be growing global uncertainty and trade policies from the US. Recent pronouncements from the former US president suggesting a hardline stance on tariffs are rippling through global markets, including India. The announcement of an additional 25% tariff on steel and aluminum has further intensified market pressure. Experts suggest investors will be closely watching for any statements from Prime Minister Modi and the former US president, as these signals could determine whether the market sees any recovery.  

Sensex Plunges

The stock market experienced a dramatic downturn on Tuesday. The BSE Sensex fell 1,281.21 points during trading, hitting a low of 76,030.59, compared to its previous close of 77,311.80. As of 2:15 pm, the Sensex was trading at 76,195.89, down 1,116 points.  

This downward trend has been ongoing since February 4th, with the Sensex experiencing a 3% decline. From a close of 78,583.81 on February 4th, the Sensex has fallen by 2,553.22 points.