Why stock market is falling today: Key factors behind today's fall; Sensex declines 600 pts, Nifty below 23,400

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Benchmarks equity indices Sensex and Nifty traded lower on Monday, as global trade concerns weighed on risk sentiment following US President Donald Trump's warning that he would impose new tariffs this week.

The BSE Sensex was trading 629 points, or 0.81%, lower at 77,231. The Nifty50 was down 187 points, or 0.79%, trading at 23,372 around 10:50 am.


The market capitalisation of all listed companies on BSE dropped by Rs 5.15 lakh crore to Rs 418.78 lakh crore.

Why is the stock market falling today?


1) Trump’s tariff warning hits sentiment


Trump announced on Friday that he plans to introduce reciprocal tariffs by Monday or Tuesday, escalating tensions in global trade. His move aims to impose tariffs on imports equal to the rates trading partners apply to US exports, adding uncertainty to global markets.

2) Rate cut hopes fade


The US President also repeated warnings of imminent tariffs, including on steel and aluminium imports, an inflationary move that could limit the scope for rate cuts.

Higher rates in the US make investments in emerging markets such as India less attractive for foreign investors.

3) Persistent FII selling


Foreign portfolio investors have offloaded Indian shares worth about $9.9 billion on a net basis in 2025 so far, according to the National Securities Depository (NSDL).

"With the dollar index above 108 and the 10-year US bond yield above 4.4%, FIIs will continue to sell the rally, restricting any potential upside," said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

4) Rupee at record low


The Indian rupee dropped to its lifetime low as the risk of fresh US trade tariffs spurred losses in most regional currencies.

The rupee declined to 87.95 per US dollar in early trading, falling past its previous record low of 87.5825 hit last week. The currency was last quoted at 87.9325, down 0.6% on the day.

The rupee, which logged its worst weekly decline since December 2022, is likely to remain under pressure this week due to the risks of trade tariffs, ahead of crucial US inflation data.

(With inputs from agencies)

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