Stock market crash: These 5 reasons led to the fall in the stock market

News Topical, Digital Desk : A big decline was seen in the Indian stock market on Thursday. Decline was recorded in most sectors. The biggest decline was seen in IT stocks. Around 3 pm, the BSE Sensex fell by more than 737 points to 736.83, while the NSE Nifty also fell by about 250 points and went below the level of 24,900. The market cap of all the companies listed on the BSE has come down by Rs 4.19 lakh crore to Rs 451 lakh crore. The Nifty Realty Index fell by 2 percent, Nifty Auto by 1.7 percent and Nifty Metal Index by 1.6 percent. Nifty Bank fell by 0.76 percent.

At the time of writing this report, 43 of the 50 Nifty stocks were down, including Tata Motors, Tata Steel, Shriram Finance, L&T, Coal India, Titan Company, Power Grid, Nestle India, Tata Consumer Products, Jio Finance, M&M, HUL and SBI Life. These stocks declined by 1.5% to 3%. Let us know what are the major reasons behind the decline in the market.

1. Threat of new US tariffs US President Trump expressed the possibility of sending notices of unilateral tariff rates to US trade partners in the next 1–2 weeks, increasing global trade uncertainty. Donald Trump's 3-month pause on reciprocal tariffs against his trade partners is set to end on July 9.

2. Tensions increased in the Middle East Iran–Israel tensions deepened and the US started evacuating its people from Iraq, Kuwait, Bahrain, which has raised concerns about geopolitical risk among investors. US intelligence indicates that Israel may attack Iran's nuclear facility.

3. Net selling by FIIs Foreign portfolio investors (FIIs) sold Indian shares worth about ₹446 crore in the previous day, putting pressure on the market.

4. Weak global cues Asian markets (like Shanghai, Nikkei, Hang Seng) and US futures were down as US–China trade talks remained unclear.

5. Crude oil prices rise Crude oil prices rose over 4 per cent on the back of sharp rise in tensions in the Middle East. Brent rose to $69.77 and WTI to $68.15 per barrel—inflation pressure increased and the rupee was impacted.