Stock market crash today: Nifty50 ends below 25,200; BSE Sensex down 690 points – top reasons for market fall
Stock market crash today: Nifty50 and BSE Sensex, the Indian equity benchmark indices, tanked in trade on Friday. While Nifty50 went below 25,200, BSE Sensex was down over 700 points intraday. Nifty50 closed the day at 25,149.85, down 205 points or 0.81%. BSE Sensex was at 82,500.47, down 690 points or 0.83%.Major stock indices Nifty50 and BSE Sensex fell for the third consecutive session on Friday, declining approximately 1 per cent due to substantial selling in IT, auto and energy sectors. Analysts noted that uncertainties regarding tariffs and mixed global market conditions contributed to the downward pressure.Notable declines were seen in Mahindra & Mahindra, Bharti Airtel, Tata Motors, Titan, HCL Tech, Bajaj Finance, Reliance Industries, Trent, Infosys and HDFC Bank.Hindustan Unilever Ltd (HUL) shares rose 4.61 per cent after announcing Priya Nair as their first woman CEO and MD, effective August 1, 2025. Positive performers included Axis Bank, NTPC, Eternal and State Bank of India.Among Sensex companies, Tata Consultancy Services saw a 3.46 per cent decline following its June quarter results.“The domestic market experienced a negative close due to a sober start to Q1 earnings season and a ramp-up in the tariff threat by the US to impose a 35 per cent tariff on Canada. Investors may continue to be focused on quarterly earnings for a buy-on-dips strategy. However, in the near term, the current premium valuation and the global headwinds like low spending and tariff uncertainties may restrain new inflows. The IT index underperformed due to deferment in orders and new investments, which may impact FY26 earnings estimates,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
Why did the stock market fall today? Top reasons
1. TCS Q1 Performance Below ParThe broader market sentiment weakened following TCS’s underwhelming Q1FY26 performance, particularly on the revenue front. The company’s shares declined by 2.5% to Rs 3,297 after announcing results. Despite reporting a net profit increase of 6% year-on-year to Rs 12,760 crore, which marginally exceeded expectations, the company registered a 3.1% year-on-year decrease in constant currency revenue.The global economic uncertainty has led clients to postpone non-essential technology investments, prompting financial analysts to reduce their FY26 earnings projections. This negative sentiment affected the entire IT sector, with companies like Infosys, Wipro, LTIMindtree, and Tech Mahindra experiencing declines of 1-3%. Consequently, the Nifty IT index recorded a 2.1% decrease.2. Trump’s Latest Tariff Announcement Unsettles MarketsThe US President Donald Trump revealed plans to implement a 35% tariff on Canadian imports in the coming month, alongside potential tariffs of 15%-20% on other significant trading partners. This declaration has triggered concerns about an escalating trade conflict, negatively impacting global market confidence.The markets responded swiftly, with Nasdaq and S&P 500 futures experiencing a 0.4% decline, matched by a similar drop in EUROSTOXX 50 futures. Trump had earlier in the week delayed certain tariffs until August 1 to facilitate discussions, but subsequently widened the scope of duties affecting key allies, including Japan and South Korea.3. Oil Markets React to Potential Russian SanctionsOil values increased following Trump’s indication of an upcoming announcement regarding Russia, leading to speculation about additional sanctions.Brent crude reached $68.83 per barrel, whilst US WTI crude advanced to $66.81. The prospect of restricted supply drove oil prices upwards, though increases were limited by worries over expanding OPEC+ production and persistent trade-related ambiguity.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
