Why is the market falling today? Dalal Street hit a roadblock on Tuesday morning as Indian equities lost steam after a strong run, falling nearly 1% in early trade. The sell-off came just a day before U.S. President Donald Trump’s additional 25% tariff comes into effect, rattling investor sentiment across global markets.
By 9:40 am, the S&P BSE Sensex had shed 624.03 points to 81,011.88, while the NSE Nifty50 dropped 191.85 points to 24,775.90. The sharp decline reflected widespread selling pressure across most sectors, overshadowing the handful of gainers.
At the opening bell, the market mood turned gloomy. Hindustan Unilever emerged as the top performer, edging up 0.57%, followed by Infosys at 0.27% and Tata Consultancy Services with a modest 0.20% gain. However, the momentum stopped there.
On the losing side, Sun Pharma led the downfall with a steep 3.63% drop. Adani Ports fell 1.59%, Power Grid Corporation slipped 1.53%, Bharat Electronics Limited dropped 1.48%, and Tata Steel declined 1.47%.
Why is the market falling today?
Market experts pointed to heightened nervousness over U.S. tariff implementation and weak technical cues.
“As the U.S. tariffs are going to kick start, the market is witnessing some kind of nervousness at this point of time. As long as the Nifty drifts below the 25,000 level, weakness will persist,” said Kranthi Bathini, Director – Equity Strategy, WealthMills Securities Pvt Ltd.
Bathini added that ahead of the mid-week holiday, investors are staying cautious, particularly in sectors directly impacted by tariffs such as gems & jewellery, textiles, and aquaculture.
Adding to the anxiety, investors were awaiting the outcome of a key Prime Minister’s Office (PMO) meeting on the tariff issue scheduled for later in the day.
Broader market snapshot
The market downturn wasn’t limited to frontline indices. The Nifty Midcap 100 fell 0.97% and the Nifty Smallcap 100 declined 1.13%, indicating broad-based selling. Volatility also spiked, with India VIX climbing 4.06%.
Among sectoral indices, only Nifty FMCG showed resilience, inching up 0.14%. The rest saw red, with Nifty Pharma plunging 1.50%, Nifty Healthcare sliding 1.49%, and Nifty Realty down 1.03%. Other notable losers included Nifty Metal (-0.95%), Nifty Financial Services (-0.94%), Nifty Private Bank (-0.92%), and Nifty PSU Bank (-0.78%).
Despite the turbulence, some analysts believe the market may not see a sharp correction thanks to strong domestic flows.
As Trump’s tariff deadline looms, Dalal Street’s early Tuesday plunge reflects a mix of global uncertainty, sectoral pressure, and pre-holiday caution. While volatility may persist in the short term, strong domestic liquidity remains the safety net keeping markets afloat.
