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Indian stock market benchmark sense and Nifty crashed as 1% on Tuesday, expanding the streak of its defeat for the fifth consecutive season
Stock market crash on 11 February
Sensex more than 1000 points, stock market accident: Dalal Street is facing uncertainty inspired by a combination of global and domestic factors. S&P BSE Sensex fell below 77,000 points, dropped more than 1,000 points during Intrade trade, while NSE NIFTY50 also experienced a sharp decline on Tuesday afternoon.
At 1:12 pm, the sensex was below 956.92 points, standing at 76,354.88, while the Nifty fell by 294 points, reaching 23,087.60. Most broad market indices also showed negative movement as volatility increased.
A significant decline in major indices such as Nifty Bank, Nifty Financial Services and Nifty highlighted intensive sales pressure in domestic markets.
The markets were weighed by US trade tension, President Donald Trump’s tariff, outflow of ongoing foreign funds and weak corporate earnings. There was more damage in the broad market, with more than 3.5 percent with midcap and smallcap indices.
Major causes of stock market accident on 11 February
Trump’s tariff escalation global fear fuels
US President Donald Trump, one of the major factors running foreign institutional investors (FII) outfits, is concerned about tariff policies. His recent tasks have caused positive domestic factors, such as promoting consumption from Union Budget 2025 and cuts in the repo rate of the Reserve Bank of India.
Trump has raised tariffs on steel and aluminum imports, removing exemption and duty-free quota for major suppliers such as Canada, Mexico and Brazil. The main investment strategist of Geojit Financial Services, Dr. VK Vijaykumar said, “Trump’s decision to impose 25% tariff on steel and aluminum will affect countries such as Mexico, Brazil, South Korea and Vietnam. Metal prices will be soft for a long time. “He also said that new steel tariffs can affect India due to concerns over dumping, contributing to a sharp decline in metal shares.
Rupee weakness adds pressure for FII sale
The continuous weakness of the rupee on Monday put more pressure for the market spirit, reducing the US dollar’s record of $ 88.
Fund manager and Sovilo Investment Managers LLP co-founder Sandeep Aggarwal explained, “The decline in the market is mainly due to depreciation of the rupee. When the rupee weakens, the sale of FII intensifies as their real return decreases. ,
However, the rupee was recovered by about 21 money today, retrieving 87 points, possibly due to intervention by the Reserve Bank of India (RBI). Despite this rebound, the rupee remains the worst performing currency in Asia this year, with an outflow of about $ 9 billion from Indian equity.
Fii migration continues
Foreign investors have withdrawn Rs 12,643 crore from Indian equity alone in February, with a large -scale sale of Rs 87,374 crore. Aggarwal further emphasized, “The major concern is the rupee depreciation, is closely associated with the global economic conditions and the policies of Trump.”
Weak income reduces spirit
The weak third quarter earnings reduced the investor’s spirit further. Eicher Motors’ shares fell 7 percent after the company missed the profit and margin estimates for the Q3 FY25, affected by high cost and decline in sales of high-margin motorcycles. Similarly, Escorts Kubota’s shares fell 5.3 percent after reporting weak-to-first earnings and providing a cautious approach to the upcoming quarters.
Global market pressure
Globally, the investor was under equity pressure due to caution amid Tram’s tariff growth. Asian markets slipped, Hong Kong’s Hang Seng decreased by 0.3 percent, while S&P 500 futures fell by 0.2 percent. Euro Stoxx 50 futures also saw a decline. Meanwhile, the dollar became stronger, and gold prices increased, indicating a flight for safety as a fear of global trade war, making investors afraid.
Evaluation concerns in middle and small-cap
The concern of valuation in the Midcap and Smallcap segment was also weighed in the markets. ICICI Prudential AMC CIO S. Naren recently warned of “absurd” evaluation in this segment, urging investors to get out of mid and small-cap shares. His comments debated in the mutual fund industry, adding a sense of recession to a broad market.
Large-caps provide security
VK Vijaykumar, from Geologet Financial Services, said, “Tireless sales by FIIs in large cap have made their evaluation fair, while middle and small-cap evaluation remains highly.” He suggested that patient investors may get opportunities in quality. Large-cap stocks, especially in banking, IT, autos, pharma and capital goods.
Pressure on auto, realty and pharma stock
A widespread-based decline in auto, realty and pharma stocks also weighed markets, mainly due to minor Q3 income and weak guidance for the coming year. Shares like Aishar Motors with prominent players in these areas saw a sharp decline during today’s session.
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