Stock market crash today: The domestic equity benchmark, the Sensex, crashed over 1,000 points in intraday trade on Friday, April 25, on heavy selling across segments despite largely positive global cues. The Sensex opened at 79,830 against its previous close of 79,801 and crashed nearly 1,200 points, or 1.50 per cent, to an intraday low of 78,606. The NSE counterpart, the Nifty 50, opened at 24,289 against its previous close of 24,247 and plunged nearly 400 points, or 1.6 per cent, to an intraday low of 23,848.
The BSE Midcap and Smallcap indices saw deeper losses as both crashed more than 3 per cent during the session.
Around 12:45 PM, the Sensex was 839 points, or 1.05 per cent, down at 78,963, while the Nifty 50 was trading with a loss of 293 points, or 1.21 per cent, at 23,954.
A massive selloff made investors poorer by about ₹10 lakh crore in a session as the overall market capitalisation of firms listed on the BSE dropped to nearly ₹420 lakh crore from nearly ₹430 lakh crore in the previous session.
Why is the Indian stock market falling today?
The Indian stock market witnessed a heavy selloff on Friday, even as major Asian peers, including Japan’s Nikkei and Korea’s Kospi, jumped over a per cent during the session, looking set to end the week with gains. Asian shares jumped, following a nearly 3 per cent gain in the Nasdaq and a 2 per cent gain in the S&P 500, after the Trump administration’s signals eased concerns over the trade war. Media reports suggested the Trump administration could drop tariffs on China to 50–65 per cent.
Experts point out the following five factors behind the Indian stock market crash today:
1. Pahalgam terror attack weighs on sentiment
Experts say the Pahalgam terror attack has flared up tensions between India and Pakistan, which is weighing on market sentiment. There are speculations that tensions between the two countries may escalate in the near term as Prime Minister Narendra Modi has vowed to “identify, track and punish” the perpetrators.
“There is a sense of anxiety due to evolving developments with Pakistan. Uncertainty over how the geopolitical situation will unfold is weighing on market sentiment. However, there is an expectation that any conflict will be limited and unlikely to affect the overall trajectory of the market materially,” said Pankaj Pandey, the head of research at ICICI Securities.
“The potential headwind looming large on the horizon is the uncertainty regarding India’s response to the terror attack and its consequences,” said VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.
2. Profit booking after recent rally
Experts say the domestic market is witnessing profit booking after a rise of over 8 per cent in recent days, amid a lack of fresh triggers and US President Donald Trump’s flip-flops on tariff policies.
“After healthy gains over the past few days, profit booking is one of the factors behind the market’s decline. The domestic market may consolidate for a while,” said Pandey.
“After a seven-day winning streak, investors are engaging in profit booking, and the markets have been on an upward trajectory. And this correction is seen as a natural response to the recent gains,” said Kunal Kamble, Senior Technical Research Analyst at Bonanza Group.
3. Global uncertainty dents India’s growth outlook
While India’s macroeconomic outlook remains sound, concerns over the economic impact of a trade war continue to be a key overhang. Although India is among the least affected countries, largely due to its strong domestic demand and demographic dividend, it cannot remain entirely immune to a global economic slowdown.
The World Bank lowered its growth forecast for India by 0.4 percentage points to 6.3 per cent for FY26 on April 23, citing increased uncertainty in the global economy that will dim prospects for most South Asian nations.
The IMF also lowered its FY26 forecast to 6.2 per cent from 6.5 per cent, which it had forecast in January. The World Bank and the IMF’s revised forecasts are marginally below the Reserve Bank of India (RBI)’s 6.5 per cent growth estimate.
4. Mixed Q4 earnings fail to boost market sentiment
The March quarter (Q4) earnings of Indian corporates have been mixed so far, and management commentaries have remained cautious. This has failed to help the domestic market sustain the gains seen over the past few days.
Experts say Q4 earnings so far have been in line with expectations, with major sectors such as banking performing well. However, cautious management commentaries amid global uncertainties are not reinforcing expectations that Q1FY26 earnings will be stronger.
5. Technical factor: 24,350 key resistance for Nifty
The Nifty 50 has key resistance at 24,350, followed by 24,450-24,500. Experts say a fresh bullish move is only possible after a decisive breakout above these levels.
According to Shrikant Chouhan, the head of equity research at Kotak Securities, in the previous session, the Nifty 50 has formed an inside body candle on the daily charts, indicating indecisiveness between the bulls and bears.
Chouhan pointed out that a fresh uptrend rally was only possible after the dismissal of the 24,350 resistance zone. Above this level, the market could move up to 24,450-24,500, said Chouhan.
“On the other hand, Chouhan added that if the market falls below 24,200, there could be a quick intraday correction down to 24,100. He said further downside may also continue, which could drag the market down to 24,000.
Kamble of Bonanza Group also highlighted that major support is at 23,800, while 24,350 will act as immediate resistance, followed by 24,500.
Kamble said immediate support for the index is at the 24,000 level, which is crucial as it is a 50 per cent Fibonacci retracement. A sustained move below this could mean further weakness.
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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.
