Why stock market fell today: Sensex settles 690 points, Nifty below 25,150; 5 reasons behind the fall

Indian benchmark indices Sensex and Nifty50 ended lower on Friday, weighed down by IT stocks after Tata Consultancy Services (TCS) posted weaker-than-expected earnings. Sentiment was further dented by renewed US trade tariffs on Canada and concerns over possible sanctions on Russia.

The 30-share BSE Sensex dropped 690 points, or 0.83%, to close at 82,500, while the NSE Nifty fell 205 points, or 0.81%, to end at 25,149.

The total market capitalisation of BSE-listed companies dropped by Rs 3.77 lakh crore to Rs 456.48 lakh crore.

Across sectors, the Nifty IT index declined 1.8%, dragged by losses in TCS, LTIMindtree, Infosys, and Wipro. Auto, Realty, Media, Consumer Durables, and Oil & Gas indices fell between 1% and 1.8%, while Financials and Metals slipped nearly 0.5%. The Nifty Midcap100 and Smallcap100 also lost around 1%.

Why the stock market fell

1) Weak TCS Q1 Earnings

The broader market turned cautious after TCS’s Q1FY26 results failed to meet revenue expectations. The stock closed 3.5% lower after the IT major reported a 6% YoY rise in net profit to Rs 12,760 crore—slightly above estimates—but posted a 3.1% YoY decline in constant currency revenue.

With clients delaying discretionary tech spending amid global uncertainty, brokerages trimmed earnings estimates for FY26. The negative sentiment weighed on other IT stocks as well, with LTIMindtree, Wipro, Persistent Systems, HCL Tech, and Infosys falling between 1% and 2.6%, dragging the Nifty IT index down 1.8%.

2) Trump’s New Tariff Plans Worry Investors

US President Donald Trump announced a 35% tariff on imports from Canada starting next month, while hinting at 15%-20% blanket tariffs on other major trade partners. The move stoked fears of a broader trade war, hurting global investor sentiment.

3) Global Markets Slide

Global equities fell after Trump's tariff announcement triggered a flight to safe-haven assets. Europe’s STOXX 600 dropped 0.7%, while futures on the S&P 500 and Nasdaq fell 0.6%, pointing to a weak start on Wall Street. Meanwhile, gold prices rose and Bitcoin surged to a new all-time high.

4) Oil Rises on Possible Russia Sanctions

Adding to the volatility, oil prices edged higher after Trump said he would make an announcement regarding Russia, raising speculation about new sanctions.

Brent crude rose to $69.06 a barrel, while US WTI crude surged to $66.98. The anticipation of tighter supply pushed oil prices higher, although gains were capped by concerns over rising OPEC+ output and ongoing trade-related uncertainty.

5) SEBI Crackdown on Pump-and-Dump Operations

Investor sentiment was also hit by reports that SEBI is ramping up its crackdown on a large-scale pump-and-dump scheme involving over 200 privately listed companies. According to NDTV Profit, the market regulator is probing firms suspected of artificially inflating share prices and dumping them on unsuspecting investors.

The investigation has involved extensive searches across more than 80 premises, with data seized from over 150 mobile devices and 100 computers. Many of the entities under scrutiny, reportedly operating from Ahmedabad, are believed to have manipulated stocks through coordinated social media campaigns and misleading narratives.

The ongoing probe, said to be one of SEBI’s biggest enforcement actions, has raised caution among investors, particularly in the broader market and low-float stocks.