Stock market crash today: Nifty50 and BSE Sensex tanked in trade on Tuesday on weak global cues and IT stocks rout along with fresh tariff threats from US President Donald Trump. While Nifty50 dropped over 300 points, BSE Sensex went below the 82,000 intraday. Nifty50 ended the day at 25,424.65, down 288 points or 1.12%. BSE Sensex closed at 82,225.92, down 1,069 points or 1.28%.Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, “President Trump’s State of the Union address today and the message that he would convey will be keenly watched by markets globally. The EU freezing the deal with the US in the light of the tariff changes following the US Supreme Court verdict and Trump’s warnings to countries backing away from deals indicate that the tariff drama has more in store for economies and markets. We will have to wait and watch how this drama plays out.” “Meanwhile the trend of weakness in tech stocks stemming from the potential AI impact continues. The weakness in the ADRs of Indian IT companies indicates that this segment will continue to remain under pressure.” “A positive trend in the market that will have significant bearing on the markets is the change in the FII strategy in India. FIIs have been buyers in ten out of the last seventeen trading sessions indicating their renewed interest in India. The improving corporate earnings in India is the principal reason for this change in FII stance. Given the robust macros of the Indian economy and improving corporate earnings, this FII buying trend can continue. Therefore, sectors in which FIIs have been buyers like capital goods and financials will remain resilient and the IT segment in which they have been sellers will continue to be weak. So, watch out for the stocks in these segments.”The crash has eroded approximately Rs 4.6 lakh crore in investor wealth, pulling the overall BSE market capitalisation down to nearly Rs 464 lakh crore.
Why stock market crashed today: Top reasons
1) Fresh blow to IT stocksTechnology counters such as Tata Consultancy Services, Infosys and HCL Technologies came under intense selling pressure after Anthropic announced that its Claude Code tool can help modernise legacy systems built on COBOL.Shares of Infosys dropped nearly 3%, while HCL Technologies, Mphasis and Persistent Systems fell over 2% each. TCS, Tech Mahindra, Wipro and other IT stocks declined by around 2%, dragging the Nifty IT index down more than 2% to 30,849.05.Anthropic said on Monday that Claude Code could automate much of the exploration and analytical work involved in upgrading COBOL-based systems. The development triggered a sharp selloff in US markets as well, with IBM plunging 13% overnight.COBOL, short for Common Business-Oriented Language, was developed in the late 1950s and remains widely used for business data processing, including payment systems and retail transactions. Anthropic estimates that about 95% of ATM transactions in the United States still depend on COBOL, highlighting the potential for artificial intelligence-driven cost efficiencies in this segment.2) New tariff warning from TrumpInvestor anxiety intensified after US President Donald Trump signalled a tougher trade approach. In a post on Truth Social on Monday, Trump cautioned that countries seeking to “play games” with the recent court decision would be met with sharply higher tariffs.His comments followed Friday’s ruling by the Supreme Court of the United States, which invalidated tariffs imposed under the International Emergency Economic Powers Act. Reacting to the judgment, Trump said he would move to implement a 15% universal tariff under Section 122 of the Trade Act of 1974 instead.3) US tech rout spills over to AsiaAsian equities weakened in early Tuesday trade after a sharp decline on Wall Street rattled global sentiment. Markets were pressured by lingering uncertainty over Trump’s tariff direction as well as escalating geopolitical risks.MSCI’s broadest index of Asia-Pacific shares outside Japan, the MSCI Asia-Pacific ex Japan Index, gave up earlier advances following a six-session rally and was last trading 0.2% lower, with South Korean stocks leading the losses.In contrast, Japan’s Nikkei 225 gained 0.7% as trading resumed after a public holiday. S&P 500 e-mini futures edged up 0.1%.In the United States overnight, the S&P 500 dropped 1.0%, erasing the gains recorded in the previous week. Fears that artificial intelligence could disrupt employment and profitability in software and other sectors also dragged the Nasdaq Composite down 1.1%.4) Rupee weakens against the dollarThe Indian rupee slipped 0.07% to 90.95 against the US dollar on Tuesday. A depreciating currency can prompt foreign investors to pull out funds, adding stress to equities. Additionally, a weaker rupee raises the cost of imports, particularly crude oil, potentially fuelling inflation and compressing profit margins for companies reliant on imported inputs. This dynamic can weigh on earnings outlooks and investor confidence.5) Concerns over possible US action against IranUncertainty has also been fuelled by geopolitical tensions. While fresh talks between the United States and Iran are set to be held in Geneva, Donald Trump said on Friday that he was weighing the possibility of a strike if Tehran failed to reach an agreement with Washington. “I guess I can say I am considering that,” he remarked in response to a reporter’s question.Reacting to the statement, Esmaeil Baghaei, spokesperson for Iran’s Ministry of Foreign Affairs, said on Monday that any US military action, even limited strikes, would be regarded as an “act of aggression” and would prompt a response.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
