Share market crash: A day after clocking healthy gains of over half a per cent, Indian stock market benchmarks the Sensex and the Nifty 50 resumed their downward march on Thursday, July 24, suffering significant losses in intraday trade.
The Sensex crashed nearly 700 points to an intraday low of 82,047, while the Nifty dropped 0.80 per cent to a day’s low of 25,018.70.
Around 12:35 PM, the Sensex was 502 points, or 0.61 per cent, down at 82,225, while the Nifty 50 was 136 points, or 0.54 per cent, lower at 25,084.
Why is the Indian stock market falling?
Experts have identified five critical factors likely contributing to the ongoing weakness in the stock market:
1. Unimpressive Q1 earnings
India Inc.’s Q1 results have been mixed, keeping the market in a range. Experts noted that earnings growth is essential for the market to sustain its gains—something that currently seems distant.
“Slowing GDP growth and lower inflation do not bode well for corporate earnings growth. I think we need to wait for a material uptick in income growth for a broad-based consumption recovery,” said Krishnan V R, Chief of Quantitative Research at Marcellus.
2. Elusive India-US trade deal
The delay in a final deal between India and the US is keeping investors on the sidelines.
While US President Donald Trump has announced a trade deal with Japan, a similar agreement with India remains uncertain despite extended negotiations.
“Prolonged delays carry risks; lost export competitiveness, retaliatory tariffs, and a dent in the broader US-India strategic alignment, including tech and defence cooperation. The road ahead will require political will on both sides to strike a balance between national priorities and global partnership,” said Sankhanath Bandyopadhyay, Economist at Infomerics Valuation and Ratings.
(This is a developing story. Please check back for fresh updates.)
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.