Stock market today: BSE Sensex tanks over 1,100 points; Nifty50 below 23,250

Stock market crash today: BSE Sensex and Nifty50, the Indian equity benchmark indices, tanked in trade on Tuesday. While BSE Sensex plunged over 1,200 points, Nifty50 went below 23,200. At 12:02 PM, BSE Sensex was trading at 76,142.42, down 1,273 points or 1.64%. Nifty50 was at 23,189.50, down 330 points or 1.40%.
Indian equity markets declined for a second consecutive session on Tuesday, with the Sensex and Nifty experiencing significant drops, primarily affected by IT and banking sectors. The market sentiment was subdued due to apprehensions regarding U.S. President Donald Trump’s proposed comprehensive reciprocal tariffs.
All major sectors, except automotive, showed negative performance, with Nifty IT, Realty, Financial, and Consumer Durables sectors declining between 1-3%.
The total market value of BSE-listed companies decreased by Rs 1.25 lakh crore to Rs 411.62 lakh crore, according to an ET report.

Why is the stock market crashing today?

1) Concerns over Trump’s tariff strategy
Investors remain cautious as April 2 approaches, which Trump has designated as “Liberation Day,” when he plans to reveal extensive reciprocal tariffs. Trump’s weekend statements suggested these tariffs would affect all nations, not exclusively those with substantial trade deficits, triggering concerns about potential global economic slowdown due to trade conflicts.
“Globally markets are focused on the details of Trump’s reciprocal tariffs to be announced tomorrow. The market trends after the announcements will depend on the details of the tariffs and how they will impact different countries and sectors,” said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
2) IT sector faces headwinds
Information technology firms, with substantial US market exposure, declined 1.8% due to softening demand outlook. The sector’s 15% decline in the March quarter has negatively impacted the Nifty 50 performance.
“We expect the FY26 revenue outlook for IT firms to be in-line to disappointing, and downside risks to earnings remain,” Morgan Stanley analysts noted.
3) Oil prices reach significant levels
Oil values approached a five-week peak, triggering inflation worries. Brent crude stood at $74.67 per barrel, whilst US West Texas Intermediate (WTI) was at $71.37. Elevated oil prices potentially affect India’s fiscal deficit and company profit margins.
4) Market consolidation follows upward trend
The Nifty and Sensex recorded 5.4% gains across eight sessions, moving into positive territory for the year. Recent profit-taking activities have led to market correction. Elevated valuations in a brief period have prompted caution amongst traders, resulting in selling of major stocks.
“India outperformed most markets in March with 6.3% return. FIIs turning buyers and the consequent short covering contributed to the rally. Can the rally continue or will there be another downturn? This will depend mainly on what Trump announces in tariffs. If the tariffs are lower-than-feared there can be a rally in the market which will be led by externally linked sectors like pharmaceuticals and IT. On the other hand if the tariffs are severe there can be another round of downturn in the market,” Vijayakumar said.