Why Share Market Is Falling Today: Sensex Tanks 900 Points on Tariff Fears, IT Selloff and Oil Surge

Indian stock markets saw a sharp fall on February 24. The BSE Sensex plunged nearly 900 points to hit an intraday low of 82,411. Meanwhile, the Nifty 50 dropped about 1% to around 25,460.

The selloff was broad-based, with mid- and small-cap stocks also falling up to 1%.

Investors lost more than ₹4 lakh crore in wealth as the total market capitalisation of BSE-listed companies declined from ₹469 lakh crore to ₹465 lakh crore.

Fresh Fears Over US Tariffs

Markets are also closely watching Trump’s State of the Union address. Uncertainty around global trade policies has made investors cautious worldwide.

Rising US-Iran Tensions

The ongoing tensions between the US and Iran are adding to global uncertainty. 

Continued Selloff in IT Stocks

The Nifty IT Index fell nearly 4% during the session and has declined about 20% so far in February.

Concerns over AI-driven disruption and weak US tech sentiment are hurting Indian IT stocks. Weak performance of ADRs of companies like Infosys has added pressure.

Read More: NSE Unveils Nanosecond Trading Speeds, Aiming for 100 Million Trades Per Second.

Rise in Crude Oil Prices

Brent crude oil prices rose around 1%, crossing $72 per barrel and nearing a six-month high.

Higher oil prices are negative for India, as the country imports most of its crude oil. Rising oil prices can increase inflation, widen the trade deficit, and put pressure on the rupee.

Stronger US Dollar

The dollar index gained strength and is approaching the 98 mark. A stronger dollar often leads to capital outflows from emerging markets like India.

Although foreign institutional investors (FIIs) had recently turned buyers, a rising dollar and high valuations could slow fresh inflows.

Conclusion

The sharp fall in the Sensex and Nifty is the result of multiple global and domestic pressures, US tariff uncertainty, geopolitical tensions, IT sector weakness, rising crude prices, and a stronger dollar. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.