Frontline indices the Sensex and the Nifty 50 extended losses for the fifth consecutive session on Friday, January 9, as persisting concerns over foreign capital outflow, geopolitical tensions, and caution ahead of the Q3 earnings kept investors away from riskier equities.
The Sensex fell nearly 500 points, or more than 0.50%, to an intraday low of 83,707.98, while the Nifty 50, too, dropped by more than half a per cent to an intraday low of 25,735.15. The BSE Midcap and Smallcap indices dropped by over a per cent each.
In these five sessions, the Sensex has crashed over 2,000 points, or nearly 2.5%, while the Nifty 50 has fallen by 2.3%.
Why is the Indian stock market falling?
Here are five key factors that are driving the domestic market down:
1. Focus on the US Supreme Court
The US Supreme Court is expected to issue its order on Trump’s “Liberation Day” tariffs on Friday, January 9.
If the Court rules against Trump, it would come as a major relief for the markets. However, a verdict in his favour could further dampen market sentiment, as there are apprehensions that it may embolden him to pursue more aggressive tariff measures.
2. Growing concerns over fresh tariffs
While all eyes are on the Supreme Court verdict, investors are concerned over the prospects of an increase in US tariffs after Republican Senator Lindsey Graham, on January 7, said that Trump had backed the Russia sanctions bill, which could raise US tariffs to at least 500% on countries that buy Russian oil.
(This is a developing story. Please check back for fresh updates.)
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
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