Stock market crash: 28-year record shattered, driven by these 3 major reasons

According to the Bombay Stock Exchange (BSE), the Sensex plummeted by 1409.59 points, closing at 73,195.57 points. The Nifty experienced a drop of 490.80 points, reaching a low of 4,671.70 points.

Indian Stock Market Crash: The major benchmark indices of the Indian stock market, Nifty 50 and Sensex, faced a significant downturn on Friday (28 February), the last trading session of the week. According to the Bombay Stock Exchange (BSE), the Sensex plummeted by 1409.59 points, closing at 73,195.57 points. The Nifty experienced a drop of 490.80 points, reaching a low of 4,671.70 points.

Ten Stocks Showing Decline

Chambal Fertiliser shares fell by approximately 7%, Redington by 6.8%, Credit Access by 6%, Patanjali Foods by 10%, IREDA shares by 7%, Hexacom by around 5%, Infosys by approximately 6%, Tech Mahindra by 5%, IndusInd Bank shares by 4.50%, and Mahindra & Mahindra shares by around 5%.

Three Major Causes of the Market Crash

1. Tariff War: US President Donald Trump announced on Thursday that his proposed tariffs on Mexico and Canada would come into effect from 4 March. Additionally, China would face an extra 10% tariff from the same date. The 25% tariff on imports from Mexico and Canada was postponed for a month; the previous deadline was 3 February. However, there was uncertainty regarding whether these tariffs would be reimposed.
2. Weakness in Asian Markets: Following US President Donald Trump's confirmation that duties on imports from Mexico and Canada would take effect next week, Asian markets traded lower on Friday. Japan's Nikkei was down 2.81%, while the Topix fell by 1.87%. The ASX 200 and Kospi were down 1.03% and 2.74% respectively. The CSI 300 was also trading 0.6% lower.
3. AI Sector Slowdown: Disappointing quarterly results from Nvidia, the largest company in the AI chips industry, played a significant role in the global market turmoil on Friday. The Nikkei share average reached its five-month low of 37084.44 on Friday. Nvidia's shares fell by as much as 8.5% overnight. The company performed particularly poorly in terms of gross margin. Although Nvidia projected strong future growth, it failed to boost investor confidence.

Nifty's Decline Breaks Record

The Nifty's decline has broken a 28-year-old record. Since 1996, the stock market has never seen a continuous five-month decline. This is the first time since 1996 that the stock market has witnessed a consecutive five-month downturn. In the history of the Nifty, only twice since 1990 has a decline been recorded for five months or more.