Sensex crashes 600 points; investors lose ₹9 lakh crore; why did Indian stock market fall today? EXPLAINED

Stock market crash today: The domestic equity benchmark, the Sensex, crashed nearly 1,200 points in intraday trade on Friday, April 25, on heavy selling across segments despite largely positive global cues. The Sensex opened at 79,830 against its previous close of 79,801 and crashed nearly 1,200 points, or 1.50 per cent, to an intraday low of 78,606. The NSE counterpart, the Nifty 50, opened at 24,289 against its previous close of 24,247 and plunged nearly 400 points, or 1.6 per cent, to an intraday low of 23,848.

The BSE Midcap and Smallcap indices saw deeper losses as both crashed more than 3 per cent during the session.

However, the indices pared losses towards the end of the day. Extending losses to the second consecutive session, the Sensex closed with a loss of 589 points, or 0.74 per cent, at 79,212.53, while the Nifty 50 ended at 24,039.35, down 207 points, or 0.86 per cent. 

The BSE Midcap index closed 2.44 per cent lower, while the Smallcap index settled with a loss of 2.56 per cent.

A massive selloff made investors poorer by about ₹9 lakh crore in a session as the overall market capitalisation of firms listed on the BSE dropped to nearly ₹421 lakh crore from nearly ₹430 lakh crore in the previous session.

Why did the Indian stock market fall today?

The Indian stock market witnessed a heavy selloff on Friday, even as major Asian peers, including Japan's Nikkei and Korea's Kospi, jumped over a per cent during the session, looking set to end the week with gains. Asian shares jumped, following a nearly 3 per cent gain in the Nasdaq and a 2 per cent gain in the S&P 500, after the Trump administration's signals eased concerns over the trade war. Media reports suggested the Trump administration could drop tariffs on China to 50–65 per cent. 

Experts point out the following five factors behind the Indian stock market crash today:

1. Pahalgam terror attack weighs on sentiment

Experts say the Pahalgam terror attack has flared up tensions between India and Pakistan, which is weighing on market sentiment. There are speculations that tensions between the two countries may escalate in the near term as Prime Minister Narendra Modi has vowed to “identify, track and punish” the perpetrators.

"There is a sense of anxiety due to evolving developments with Pakistan. Uncertainty over how the geopolitical situation will unfold is weighing on market sentiment. However, there is an expectation that any conflict will be limited and unlikely to affect the overall trajectory of the market materially," said Pankaj Pandey, the head of research at ICICI Securities.

"The potential headwind looming large on the horizon is the uncertainty regarding India’s response to the terror attack and its consequences," said VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.

2. Profit booking after recent rally

Experts say the domestic market is witnessing profit booking after a rise of over 8 per cent in recent days, amid a lack of fresh triggers and US President Donald Trump's flip-flops on tariff policies.

"After healthy gains over the past few days, profit booking is one of the factors behind the market's decline. The domestic market may consolidate for a while," said Pandey.

"After a seven-day winning streak, investors are engaging in profit booking, and the markets have been on an upward trajectory. And this correction is seen as a natural response to the recent gains," said Kunal Kamble, Senior Technical Research Analyst at Bonanza Group.

3. Global uncertainty dents India’s growth outlook

While India’s macroeconomic outlook remains sound, concerns over the economic impact of a trade war continue to be a key overhang. Although India is among the least affected countries, largely due to its strong domestic demand and demographic dividend, it cannot remain entirely immune to a global economic slowdown.

The World Bank lowered its growth forecast for India by 0.4 percentage points to 6.3 per cent for FY26 on April 23, citing increased uncertainty in the global economy that will dim prospects for most South Asian nations.

The IMF also lowered its FY26 forecast to 6.2 per cent from 6.5 per cent, which it had forecast in January. The World Bank and the IMF's revised forecasts are marginally below the Reserve Bank of India (RBI)'s 6.5 per cent growth estimate.

4. Mixed Q4 earnings fail to boost market sentiment

The March quarter (Q4) earnings of Indian corporates have been mixed so far, and management commentaries have remained cautious. This has failed to help the domestic market sustain the gains seen over the past few days.

Experts say Q4 earnings so far have been in line with expectations, with major sectors such as banking performing well. However, cautious management commentaries amid global uncertainties are not reinforcing expectations that Q1FY26 earnings will be stronger.

5. Technical factor: 24,350 key resistance for Nifty 

The Nifty 50 has key resistance at 24,350, followed by 24,450-24,500. Experts say a fresh bullish move is only possible after a decisive breakout above these levels.

Kamble of Bonanza Group highlighted that major support is at 23,800, while 24,350 will act as immediate resistance, followed by 24,500.

Kamble said immediate support for the index is at the 24,000 level, which is crucial as it is a 50 per cent Fibonacci retracement. A sustained move below this could mean further weakness.

Amol Athawale, VP of technical research at Kotak Securities, pointed out that the Nifty and the Sensex breached the 24,100 and 79,300 support zone, respectively, and slipped below their 200-day SMA (Simple Moving Average).

Additionally, Athawale underscored a reversal formation on daily charts and a shooting star candlestick formation on weekly charts, which indicates temporary weakness.

"We believe that as long as the market trades below 24,100/79,300, the correction wave will likely continue. On the downside, the market could slip to 23,800/78,500, and further downside may drag the indices down to 23,700/78,200," said Athawale.

"A breach above 24,100/79,300 could change market sentiment. If the market surpasses this level, it could rally to 24,400-24,500/80,200-80,500," Athawale said.

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