Sensex Falls Nearly 400 Points: Why India’s Stock Market Is Declining Today

Indian equity markets opened the week on a weak note, with the Sensex tumbling nearly 400 points and the Nifty slipping below 25,200, tracking a global sell-off. The decline comes amid profit booking after last week’s gains and cautious investor sentiment ahead of key domestic events, including the Tata Capital IPO listing, Q2 earnings, and upcoming inflation data.

The sell-off was further triggered by renewed trade war fears between the US and China. President Trump’s weekend announcement of a potential 100% tariff on Chinese goods created global jitters, even though he later softened his stance, saying the US does not want to “hurt” China.

Among Nifty50 stocks, Indigo, Max Health, Bajaj Auto, Bharti Airtel, and Asian Paints were gainers, while ONGC, Tata Motors, and Adani Enterprises led losses.

Market outlook and volatility:
Experts predict continued market choppiness. Anand James, Chief Market Strategist at Geojit Financial Services, said, “Volatility is likely to rise, with support at 25,230. A fall below 25,113 will cap upside plays.” Ponmudi R, CEO of Enrich Money, noted that while global uncertainty dominates, domestic liquidity remains strong, supported by robust IPO demand.

Dr. VK Vijayakumar, Chief Investment Strategist at Geojit, reassured investors that the decline may be temporary, driven by global headlines rather than fundamentals. Foreign Institutional Investors (FIIs) have bought over ₹3,200 crore in equities in the past four sessions, keeping markets resilient.

Investor takeaway:
The short-term market drop reflects a mix of profit booking and global trade tension, not weakening fundamentals. With earnings season, inflation data, and a strong IPO pipeline, markets could recover quickly, rewarding cautious and informed investors.