Sensex Crashes 1,200 Points; Nifty Falls 400 Points: Why Are Indian Stocks Falling Today?

The Indian stock market saw a sharp decline on Friday, April 25. The BSE Sensex dropped over 1,000 points during intraday trade, and the Nifty 50 also saw a steep fall. This happened even though global markets were performing well. Selling pressure across different sectors pushed the indices lower.

The Sensex opened at 79,830 compared to its previous close of 79,801. It fell sharply by nearly 1,200 points, or about 1.50 per cent, hitting a low of 78,606 during the day. The Nifty 50 started the day at 24,289 versus its last close of 24,247 and dropped nearly 400 points, or 1.6 per cent, to a low of 23,848.

The broader market also saw heavy losses. The BSE Midcap and Smallcap indices both declined more than 3 per cent in the session.

By around 12:45 PM, the Sensex was still down 839 points or 1.05 per cent at 78,963, while the Nifty 50 was lower by 293 points or 1.21 per cent at 23,954.

The massive sell-off in the market led to a total loss of about ₹10 lakh crore in investor wealth. The total market capitalisation of companies listed on the BSE dropped from nearly ₹430 lakh crore to around ₹420 lakh crore in a single session.

Why Did the Market Crash Today?

Despite strong global cues, the Indian stock market came under pressure. While Asian markets like Japan’s Nikkei and Korea’s Kospi gained more than 1% after positive signals from the US, Indian stocks did not follow. The gains in global markets were fueled by expectations that the Trump administration might reduce tariffs on Chinese goods to between 50–65%.

The following five key reasons caused today’s market crash:

Pahalgam Terror Attack Triggers Geopolitical Tensions

One of the major reasons behind today’s fall is the terror attack in Pahalgam, Jammu and Kashmir. Experts say the attack has increased tensions between India and Pakistan. Prime Minister Narendra Modi has strongly condemned the attack and has promised to identify and punish those responsible.

Read More, Laurus Labs Share Price in Focus After Q4 Profit Jumps 3x to ₹234 Crore, Revenue Rises 19%. 

Profit Booking After a Strong Rally

The market has seen a strong rally recently, with the Sensex and Nifty gaining more than 8% over the past several days. In such situations, it is normal for investors to book profits, especially when there are no fresh triggers to drive the market higher.

Global Uncertainty Impacting India’s Outlook

Even though India’s economy remains strong, global concerns are putting pressure on investor sentiment. The fear of a global economic slowdown, especially due to trade tensions, is a big factor. While India is less exposed compared to other countries due to its domestic demand, it still cannot avoid the effects entirely.

The World Bank recently reduced its FY26 growth forecast for India from 6.7% to 6.3%. Similarly, the International Monetary Fund (IMF) cut its forecast from 6.5% to 6.2%. These downgrades reflect growing uncertainty in the global economy, and that is influencing how investors view India’s future growth potential.

Mixed Q4 Results Fail to Support Market

Quarterly earnings for the January–March period (Q4 FY25) have been mixed so far. While some sectors like banking have performed in line with expectations, the overall response from company managements has been cautious. Investors had hoped strong earnings would continue to push the market higher, but that hasn’t happened.

Experts say that the cautious tone of corporate leaders, combined with ongoing global uncertainties, is limiting the impact of Q4 results. As a result, the market is not getting enough support from earnings to offset other concerns.

In Summary

Today’s market crash was driven by a combination of negative domestic and global factors. The terror attack in Kashmir, profit booking after a strong rally, cuts in India’s growth forecast, and mixed earnings results all contributed to the decline.

Even though global markets were doing well, the Indian market couldn’t hold on and saw a sharp sell-off. Experts believe that unless tensions ease and the market crosses key resistance levels, volatility may continue in the near term.

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