Stock market today: Why did the Sensex plunge 700 points from its intraday high? Explained with five crucial triggers

Stock market today: Following a six-day bull run, the Indian stock market witnessed sharp selling pressure at intraday high levels on Tuesday.

Today, the BSE Sensex opened in the green at 78,296 and touched the day's high of 78,741. However, the frontline index ended with marginal gains at 78,017, losing over 700 points from the intraday high. Given strong gains in early trade, Sensex today turned green on a year-to-date (YTD) basis by quoting above 78,139, the closing price of the 30-stock index on 31 December 2024. The Nifty 50 index also had a gap-up opening and the 50-stock index touched an intraday high of 23,869 but the 50-stock index ended 10 points higher at 23,668.

The Bank Nifty also witnessed sharp selling as it crashed from its intraday peak of 52,063 and hit the day's low of 51,534, recording a 500-point slide from the intraday high level. Bank Nifty finally ended 97 points southward at 51,607.

According to stock market experts, today's slide can be considered profit-booking until the Nifty 50 index sustains above 23,500. They said that the upcoming monthly expiry on Thursday, a one per cent slide in Reliance's share price, a stock market holiday falling on Monday next week, Donald Trump's fresh tariff flare from 2 April 2025, etc. are some of the crucial reasons that have triggered a sell-off at higher levels. They added that the Q4 results 2025 season will begin next week and could also be the reason for the profit-booking trigger at higher levels. However, despite today's sell-off, experts don't see this as an end to the bull trend on Dalal Street.

Why did Sensex, Nifty 50 fall from intraday high?

Share market experts listed the following five crucial reasons:

1] Monthly expiry on Thursday: “March series expiry falls on Thursday this week. As people took bulk calls during the recent bull run on Dalal Street, they are squaring off their position in bulks. This could be the reason for selling at higher levels in the stock market today,” said Anshul Jain, Head of Research at Lakshmishree Investment and Securities.

2] Stock market holiday on Monday next week: Anshul Jain of Lakshmishree Investment and Securities also said that the upcoming week off would be an extended week off for the Indian stock market as there will be no trading activity on 31 March 2025 (Monday) due to Id-Ul-Fitr or Ramzan Eid. As the US market will remain operational on Monday next week, people don't want to take any chances, and this is also a major reason for selling at higher levels.

3] Donald Trump's tariff flare: Avinash Gorakshkar, Head of Research at Profitmart Securities, said, “Including stock market holiday falling on Monday next week, investors are worried about the fresh tariff flare that motormouth Donald Trump has announced to implement from 2 April 2025. This could also be the reason for investors squaring off their current positions ahead of the fresh tariff row expected at the beginning of next month.”

4] Q4 results 2025: Avinash Gorakshkar said that Q4 earnings season for the current financial year will begin next month, and investors are eagerly waiting for the company numbers after Morgan Stanley's strong Indian economic outlook projection. So, investors are booking profits ahead of the beginning of the Q4 results 2025 season.

5] Sensex heavyweights under pressure: Avinash Gorakshkar said some attribution should be given to the sharp selling in Sensex heavyweights like Reliance Industries, ICICI Bank, Larsen and Toubro, etc. He said that Reliance weighs one-sixth of the 30-stock index weight, and its share price nosedived over one per cent in the morning session on Tuesday. Similarly, LT share price and ICICI Bank shares came under bears' grip on Tuesday, which worked as a taper for the Indian stock market rally.

Is the bull run on Dalal Street over?

On whether the bull trend in the Indian stock market is over, Avinash Gorakshkar said, “From the fundamental perspective, the market is waiting for three big triggers next month — Donald Trump's fresh tariff from 2 April 2025, Q4 results 2025, and RBI policy meeting outcome. Investors may wait for the outcome of these major events. Hence, I expect a buy-on-dips market for the next few sessions.”

“One can assume that the current bull trend has taken a pause as the Nifty 50 index may try to bounce back and make the second top in upcoming sessions. However, bulls are expected to dominate bears until the 50-stock index is above 23,250 to 23,200. From Sensex's perspective, the 330-stock index is close to its current support of 77,900 and bulls are expected to dominate until 30-stock index is above 76,900,” said Anshul Jain of Lakshmishree Investment and Securities.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.