Stock market crash today: BSE Sensex ends over 1,300 points down; Nifty50 below 23,200 - top reasons for bear attack

Stock market crash today: BSE Sensex and Nifty50, the Indian equity benchmark indices, tanked in trade on Tuesday. While BSE Sensex plunged below 76,000 intraday, Nifty50 went below 23,150. BSE Sensex closed the day at 76,024.51, down 1,390 points or 1.80%.Nifty50 ended at 23,165.70, down 354 points or 1.50%.Indian equity markets declined for a second consecutive session on Tuesday, with the Sensex and Nifty experiencing significant drops, primarily affected by IT and banking sectors. The market sentiment was subdued due to apprehensions regarding U.S. President Donald Trump's proposed comprehensive reciprocal tariffs.All major sectors, except automotive, showed negative performance, with Nifty IT, Realty, Financial, and Consumer Durables sectors declining between 1-3%.The aggregate market value of companies listed on the BSE declined by Rs 3.23 lakh crore, reaching Rs 409.64 lakh crore, according to an ET report.Ajit Mishra – SVP, Research, Religare Broking said, “Market participants are closely monitoring the ongoing tariff talks and their sectoral impact, leading to profit-booking following the recent rebound. Additionally, the Nifty index, which had been consolidating, has slipped below its range and breached the moving average ribbon support at 23,400. The next crucial support lies around 23,100 (20 DEMA), and a breakdown below this level could further dampen sentiment, whereas holding above it may pave the way for a recovery.Given the mixed signals, it is advisable to be cautious with index positions and maintain a stock-specific trading approach."1) Concerns over Trump's tariff strategyInvestors remain cautious as April 2 approaches, which Trump has designated as "Liberation Day," when he plans to reveal extensive reciprocal tariffs. Trump's weekend statements suggested these tariffs would affect all nations, not exclusively those with substantial trade deficits, triggering concerns about potential global economic slowdown due to trade conflicts."Globally markets are focused on the details of Trump's reciprocal tariffs to be announced tomorrow. The market trends after the announcements will depend on the details of the tariffs and how they will impact different countries and sectors," said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.2) IT sector faces headwindsInformation technology firms, with substantial US market exposure, declined 1.8% due to softening demand outlook. The sector's 15% decline in the March quarter has negatively impacted the Nifty 50 performance."We expect the FY26 revenue outlook for IT firms to be in-line to disappointing, and downside risks to earnings remain," Morgan Stanley analysts noted.3) Oil prices reach significant levelsOil values approached a five-week peak, triggering inflation worries. Brent crude stood at $74.67 per barrel, whilst US West Texas Intermediate (WTI) was at $71.37. Elevated oil prices potentially affect India's fiscal deficit and company profit margins.4) Market consolidation follows upward trendThe Nifty and Sensex recorded 5.4% gains across eight sessions, moving into positive territory for the year. Recent profit-taking activities have led to market correction. Elevated valuations in a brief period have prompted caution amongst traders, resulting in selling of major stocks."India outperformed most markets in March with 6.3% return. FIIs turning buyers and the consequent short covering contributed to the rally. Can the rally continue or will there be another downturn? This will depend mainly on what Trump announces in tariffs. If the tariffs are lower-than-feared there can be a rally in the market which will be led by externally linked sectors like pharmaceuticals and IT. On the other hand if the tariffs are severe there can be another round of downturn in the market," Vijayakumar said.