Why Indian Stock Markets are Falling Today: NSE and BSE Saw Drop Amid Geopolitical Uncertainties

Indian equities began the new trading week on a shaky note, with the Nifty 50 falling nearly 200 points and the Sensex dropping around 700 points. Although markets managed to hold on to lower levels, investor confidence remains fragile at higher levels, keeping the bulls cautious. 

Key Factors Behind Market Fall

Here are thekey factors, which led to thefall in the Indian stock market

Global Trade Tensions Weigh on Sentiment

US President Donald Trump announced tariffs on European allies, including the UK, in response to Denmark opposing his Greenland acquisition plan. A 10% tariff will take effect from February 1, potentially rising to 25% if no deal is reached by June 1. 

This move has reignited fears of a global trade war, sparking a risk-off mood in equities worldwide. Dow futures are down over 350 points, despite US markets being closed today for a holiday. The global caution has spilt over to Indian markets as well.

Heavyweights Drag Indices Lower

Domestic index heavyweights also added pressure. Reliance Industries and ICICI Bank together accounted for 135 points of the Nifty 50’s 175-point fall. IT giants Infosys and TCS, along with HDFC Bank, further contributed to the slide, intensifying the downward momentum in benchmark indices.

Broader Markets Show Resilience

In contrast, broader markets have been relatively steady, keeping the overall market capitalisation erosion to around ₹2 lakh crore. Earnings season continues to influence stock movements, with 79 out of 100 small-cap stocks and 78 out of 100 mid-cap stocks trading in the red.

Also Read: Sensex Tumbled ~600 Points Amid Heightened Selling Caused by Geopolitical Tensions

Haven Assets Gold and Silver Shine

Amid market uncertainty, investors are flocking to safe-haven assets. Both gold and silver are trading at record highs globally. In India, silver prices crossed ₹3 lakh per kg in today’s session, reflecting heightened demand for safer investments.

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