Sensex Falls 690 Pts, Nifty Below 25,150: 5 Key Reasons Behind Market Drop

Indian equity markets ended sharply lower on Friday as the Sensex dropped 690 points to settle at 82,500 and the Nifty50 fell 205 points to close at 25,149. The decline wiped off nearly ₹3.77 lakh crore in market capitalisation from BSE-listed companies, which now stands at ₹456.48 lakh crore. The slump was led by IT stocks, broader global trade tensions, and regulatory concerns.

Here are the five major reasons behind the market downturn:

1. TCS Q1 Earnings Disappoint Investors

Tata Consultancy Services (TCS) posted Q1FY26 results that failed to meet market revenue expectations, triggering a sell-off in IT stocks. While net profit rose 6% YoY to ₹12,760 crore, revenue in constant currency terms declined by 3.1% YoY. As a result, TCS shares slipped 3.5%.

Other tech majors like Infosys, Wipro, LTIMindtree, and HCL Tech also saw losses of 1% to 2.6%, dragging the Nifty IT index down 1.8%.

2. Trump’s Tariff Threat Sparks Global Worries

Former US President Donald Trump announced a 35% tariff on Canadian imports, effective next month, and hinted at broader 15–20% tariffs on other countries. The announcement sparked fears of a renewed global trade war, unsettling investor sentiment across global markets.

3. Global Markets Under Pressure

Global markets reacted negatively to the tariff news.

Europe’s STOXX 600 fell 0.7%

US futures dropped 0.6%

Investors flocked to safe-haven assets like gold and Bitcoin, the latter hitting a new all-time high

This global risk-off mood spilled over into Indian equities.

4. Oil Prices Rise Amid Russia Sanctions Buzz

Oil prices climbed after Trump hinted at a possible announcement related to new sanctions on Russia, raising concerns over tighter global oil supply.

Brent crude touched $69.06/barrel

WTI crude jumped to $66.98

Higher oil prices tend to hurt India, which relies heavily on imports, thereby adding pressure on equity markets.

5. SEBI Crackdown on Pump-and-Dump Schemes

The Securities and Exchange Board of India (SEBI) launched a major investigation into alleged pump-and-dump operations involving over 200 companies. The probe includes raids on 80+ locations, data seizures, and scrutiny of misleading social media campaigns used to manipulate stock prices.

This regulatory crackdown created anxiety among investors, especially in mid- and small-cap stocks, contributing to broader market weakness.

Sector-Wise Impact:

IT, Auto, Realty, Consumer Durables, Media, Oil & Gas: Down 1–1.8%

Financials & Metals: Down around 0.5%

Nifty Midcap100 & Smallcap100: Both down ~1%

Conclusion

Friday’s sell-off was driven by a combination of disappointing earnings, escalating global trade tensions, oil market uncertainty, and regulatory actions—all of which spooked investors and pushed Indian indices into the red. Market participants are now closely watching global developments and earnings from key firms for direction.