Indian stock market benchmarks, the Sensex and the Nifty 50, crashed more than 1 per cent each in intraday trade on Tuesday, May 13, amid mixed global cues. The Sensex crashed 1291 points, or 16 per cent, to an intraday low of 81,138.78, while the Nifty 50 fell 349 points, or 1.4 per cent, to an intraday low of 24,576.
The mid and small-cap segments, however, remained resilient as the broader indices rose by up to a per cent during the session.
Why is the Indian stock market falling today?
Experts believe the following five reasons could be behind the fall in the Indian stock market today:
1. Tariff woes are not behind
According to a PTI report, India has approached the World Trade Oraganisation (WTO) with a proposal to impose retaliatory duties against the United States over President Donald Trump’s tariffs on steel and aluminium.
The report has indicated trade war worries are not behind, even though the ongoing negotiations between the US and India continue.
2. Profit booking after a 4% rally
Indian stock market benchmarks jumped nearly 4 per cent in the previous session after tensions between India and Pakistan eased. The sharp rally was largely driven by short covering, which in turn prompted profit booking by retail investors.
(This is a developing story. Please check back for fresh updates.)