Why did Sensex crash 1,200 points and Nifty fall 400 points today?

Both Sensex and Nifty recorded massive declines in their value on Tuesday as both benchmark indices bled red after falling about 1.5% each intraday. Sensex dipped nearly 1,300 points to a day's low of 76,030.59 while Nifty tumbled nearly 400 points to hit an intraday low of 22,986.65.

All sectoral indices on Nifty were in the red, with Nifty Midsmall Financial Services crashing a massive 4% and Nifty Realty falling 3.80% intraday.

US President Donald Trump's tariff threats may have played a major role in the stock markets crashing in India on Tuesday. As he announced a 25% tariff on aluminium and steel imports into the US apart from additional potential tariffs, market sentiment globally took a hit. This may have further prompted traders to withdraw funds, thereby bringing markets down.