Sensex tumbles over 600 points: What's behind today's market crash
What's the story
India's benchmark equity indices continued their downward trend on Tuesday. The Sensex plunged by over 600 points while the Nifty index slipped deeper into the red as investor risk appetite waned. At the time of writing, Sensex was trading at 82,937.81, down by 638.43 points while Nifty stood at a low of 25,494.30 after losing some 189 points in value.
Market analysis
Market losses attributed to global uncertainty, geopolitical risks
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, attributed the market's weakness to a combination of India-specific issues and global geopolitical events. He said uncertainty over the US-India trade deal has been worsened by mixed signals from the US administration. Further, rising tensions in Iran are adding to traders' caution.
Market outlook
Technical indicators and market sentiment
Technical indicators present a cautious picture with Nifty 50 slipping into the red early in the session. It broke below yesterday's low, forming a lower low and reinforcing a short-term bearish structure. The index is gradually drifting toward key downside reference levels around 25,444, which is commonly viewed as a pivotal support zone.
Investor behavior
Investors adopt risk-off approach amid geopolitical tensions
Market participants have flagged a broader shift toward risk-off positioning, with investors remaining cautious ahead of the Q3 earnings season. Ponmudi R, CEO of Enrich Money, said Indian equity markets opened on a bearish note amid mixed global cues. Geopolitical uncertainties and tariff-related concerns have further dampened risk appetite among investors.