The headline says it all. Sensex crashes 900 points, investors lose ₹4 lakh crore — and Dalal Street felt the heat.
Tuesday morning opened with pressure. It didn’t ease. Selling intensified. And within hours, nearly ₹4 lakh crore in investor wealth was wiped out.
At Samco Securities, we closely track market sentiment. Today’s fall wasn’t random. It was broad-based. It was global. And it was sharp.
Let’s break it down clearly.
Market Performance: Sensex Crashes 900 Points, Investors Lose ₹4 Lakh Crore
The damage was visible right from the opening bell.
- Sensex fell nearly 900 points
- Touched an intraday low of 82,411
- Nifty 50 slipped 1%
- Hit a session low of 25,460
- Mid and small-cap indices dropped up to 1%
The selling wasn’t limited to one pocket. It was spread across sectors.
The biggest shock came from market capitalisation.
- Total BSE market cap dropped to ₹465 lakh crore
- Down from ₹469 lakh crore in the previous session
- Investors lost over ₹4 lakh crore in a single session
That’s serious wealth erosion in just a few hours.
Main News: Why Did the Stock Market Fall?
Whenever Sensex crashes 900 points, investors lose ₹4 lakh crore, there’s never just one reason.
Today’s sell-off was driven by five key global and domestic triggers.
Let’s look at each one.
1. US Tariff Uncertainty Returns
Global markets dislike uncertainty. And US trade policy created plenty of it.
Last week, the US Supreme Court (SCOTUS) struck down Trump-era tariffs. Normally, that would calm markets.
But it didn’t.
Media reports suggest the Trump administration is exploring the possibility of invoking Section 232 under the Trade Expansion Act of 1962 as a mechanism to bring global tariffs back into effect.
There were also warnings of higher tariffs for countries siding with the Supreme Court judgment.
That reignited global trade fears.
Markets are now watching the State of the Union address by US President Donald Trump on February 24. Any aggressive commentary on tariffs could further impact global risk appetite.
When global risk rises, emerging markets like India feel the tremors.
2. Rising Tension: The US–Iran Situation
Geopolitics added another layer of uncertainty.
Protests in Iran have intensified. Reports suggest thousands have died amid violent government response.
The United States has threatened military action.
Meanwhile:
- Next round of nuclear talks: Thursday, February 26
- Location: Washington–Tehran dialogue
Any escalation here impacts oil markets instantly.
And that directly affects India.
3. Sharp Sell-Off in IT Stocks
One of the biggest pressure points today was technology.
- Nifty IT index crashed almost 4% intraday
- The index has fallen nearly 20% in February
That’s a steep decline in less than a month.
Concerns driving the fall:
- AI-led disruption fears
- Elevated US interest rates
- Weakness in ADRs of Indian IT companies
IT has significant weight in benchmark indices. When IT falls this sharply, Nifty and Sensex feel it quickly.
This sectoral drag amplified the broader weakness.
4. Crude Oil Rises Above $72 per Barrel
Oil prices moved higher again.
- Brent crude jumped 1%
- Crossed $72 per barrel
- Near a six-month high
The spike comes ahead of the third round of US–Iran nuclear talks.
India relies significantly on crude oil imports to fulfill a major part of its energy demand.
Higher crude prices can:
- Widen trade deficit
- Increase inflation pressure
- Impact fiscal stability
- Put pressure on the rupee
Markets price this risk almost instantly. That’s exactly what we saw today when Sensex crashed 900 points and investors lost ₹4 lakh crore.
5. Stronger Dollar Adds Pressure
Another global signal flashing caution.
- Dollar index rose 0.20%
- Moving toward the 98 mark
A stronger dollar is usually negative for emerging markets.
Why?
Because it can trigger foreign capital outflows.
Foreign Institutional Investors (FIIs) had started buying Indian equities in the cash segment this month after the India–US trade deal announcement.
But when the dollar strengthens, that trend can reverse.
Valuations remain elevated. Earnings recovery is still awaited. In this environment, currency pressure makes global funds cautious.
And when global funds pause or pull back, markets soften.
Company & Sector Impact Snapshot
Today’s fall was not stock-specific. It was sentiment-driven.
Key impact zones:
- IT stocks saw the sharpest decline
- Broad-based weakness across sectors
- Mid and small caps down up to 1%
- Benchmark-heavy sectors contributed to index drag
No single corporate event triggered this fall. It was macro-heavy.
Broader Sentiment on Dalal Street
When headlines read Sensex crashes 900 points, investors lose ₹4 lakh crore, the natural reaction is panic.
But market moves often reflect cumulative pressure.
Today’s pressures included:
- Global tariff uncertainty
- Geopolitical tension
- Weak tech sector
- Rising crude prices
- Stronger US dollar
Together, they created a risk-off mood.
Investors chose to book profits across sectors. That intensified intraday losses.
Numbers That Tell the Story
Here’s the snapshot of what changed in just one session:
- Sensex: Down nearly 900 points
- Sensex Low: 82,411
- Nifty 50: Down 1%
- Nifty Low: 25,460
- Nifty IT: Down almost 4%
- February IT decline: Nearly 20%
- Brent Crude: Above $72/barrel
- Dollar Index: Up 0.20%, near 98
- Market Cap Loss: ₹4 lakh crore
- BSE Market Cap: ₹469 → ₹465 lakh crore
These numbers reflect sentiment more than structure.
Summary: Why Sensex Crashed 900 Points Today?
Let’s bring it together.
The Indian stock market fell sharply because of a combination of global uncertainties and sectoral weakness.
- US tariff drama revived trade concerns
- US–Iran tensions fueled oil fears
- IT stocks saw heavy selling
- Brent crude crossed $72 per barrel
- Dollar strengthened toward 98
The result?
Sensex crashes 900 points, investors lose ₹4 lakh crore in market value.
It was a global-risk driven correction. Not a company-specific crash. Not a domestic earnings shock.
Markets reacted to uncertainty.
And when uncertainty rises, risk assets feel the weight first.
Source: Livemint
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