Sensex falls over 400 points. 3 factors behind today’s stock market slump

Benchmark stock market indices fell sharply after initially rising on Wednesday. The Sensex has tumbled over 400 points, and the Nifty has also shed early gains.

At around 12:42 pm, the S&P BSE Sensex was down 439.77 points to 73,662.55 and the Nifty50 was trading 150.50 points lower at 22,347.40.

While domestic markets have gained briefly to break their losing streak, it is clear that the correction on Dalal Street is far from over.

While global factors like Donald Trump’s tariff uncertainty and US growth slowdown have made investors nervous, factors like FII outflows, weak corporate earnings, and expensive valuations of stocks have hurt the sentiments on Dalal Street harder.

On Wednesday, stock markets fell due to factors like anxiety over Trump’s tariff threats, US and India CPI data, and a sharp drop in major IT stocks.