After a 7-day rally, why did the Indian markets suddenly take a nosedive?
Mumbai, March 26, 2025 – Indian stock markets witnessed a sharp decline today, with the Sensex dropping over 600 points and the Nifty slipping below 23,550. The sudden fall came after a seven-session winning streak, leaving investors puzzled. Let’s break down what happened.
1. US Tariff Jitters Spook Markets
Investors turned cautious due to uncertainty around US trade policies. Former US President Donald Trump hinted at major tariff announcements on April 2, calling it “Liberation Day” against unfair trade practices. His statement, “There will be some exceptions, but not too many,” created global market unease, including in India.
Also Read: Race Against Time: Vietnam Cuts LNG, Car Tariffs Before Trump’s April 2 Decision
2. Profit Booking After a Strong Rally
After a week of gains, traders decided to cash in their profits, leading to a pullback. “The market is seeing profit booking at higher levels, but the short-term outlook remains positive,” said Shrikant Chouhan, Kotak Securities.
3. Rupee Weakness Adds Pressure
The Indian rupee fell 6 paise to 85.78 against the dollar, dragged down by weak equities and strong dollar demand. Forex experts pointed to month-end importers’ dollar needs and global trade tensions as key reasons.
What’s Next for the Market?
Technical analyst Anand James, Geojit Financial Services, warns that if Nifty breaches 23,600, it could slide further to 23,300. However, a rebound above 23,700-23,760 might delay the fall.
Also Read: Trump’s Tariff Threat Looms—Will It Derail the Indian Rupee’s Surge?
