Why Is Stock Market Down Today? Sensex & Nifty Crash Over 1%; D-Street Turns ‘Laal’ | Explained

Stock Market Down Today: On Friday, Indian benchmark equity indices struggled to maintain early gains, slipping into negative territory for a second consecutive session. 

Investor confidence waned amidst heightened geopolitical risks following a tragic terrorist attack on tourists in Kashmir. The BSE Sensex plunged by more than 1,100 points, dropping below 78,700, while the Nifty50 fell below the 23,900 mark by midday. Earlier in the session, optimism briefly lifted the Sensex above 80,130 and the Nifty beyond 24,350, but sharp selling pressure reversed these gains swiftly on Thursday, April 25, 2025.

The BSE Sensex dropped by 862.08 points or 1.08% to 78,939.35 by 10:45 AM, while the NSE Nifty slipped 283.30 points or 1.17% to trade at 23,963.40.

Bears Tighten Grip: Markets Nosedive After Flat Opening
Markets had opened on a flat-to-positive note with the Nifty 50 starting at 24,336.90, up 90.20 points, and the Sensex climbing 266.79 points to 80,068.22. However, that early momentum fizzled out quickly amid rising concerns. Seems like the bears are making a comeback on the D street.

Why stock market down today?
According to Sugandha Sachdeva, Founder of SS WealthStreet, the markets are reacting to multiple headwinds. “Nifty is currently facing a lot of headwinds wherein we have seen a sharp sell-off in today's trading session. After almost 7 consecutive days of rise, we are seeing a continuation of a selling trend,” she said.

“Concerns about political stability in the country and rising geopolitical tensions between India and Pakistan are weighing on investor sentiment,” she Sachdeva. “There has also been a rebound in the dollar index from lower levels which is hurting Indian assets.”

She said, “The de-escalation of tensions between the US and China could favour flows into emerging markets, including India.”
 

IT Holds Fort, Broader Market Bleeds
Among sectoral indices, Nifty IT was the only gainer, up 0.20%, while Nifty Auto, Bank, Energy, FMCG, PSU , Realty, Metal, Media, and Pharma plunged over 1%.

On the Sensex, Infosys, TCS , and IndusInd Bank were the only gainers, while Axis Bank, Adani Ports, Power Grid, NTPC, L&T, and Tata Motors topped the losers’ list.

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Opening Bell: Nifty Around 24,300, Sensex Opens Flat

Resistance Ahead, Support Below
Sachdeva explained the technical outlook as well: “The 23,800 area is likely to act as a good floor for the Nifty. On the higher side, 24,350 is acting as a stiff resistance. We could see some consolidation in this broad range, and a breakout on either side could trigger a directional move.”

Adding further technical perspective, Jatin Gedia, Technical Research Analyst at Mirae Asset Sharekhan, noted: “The Nifty has witnessed a sharp decline on the 1st day of the May series. It was trading around the 24,500 mark, which coincides with the 61.82% Fibonacci retracement level of the entire September to April decline. So, after a sharp run-up, the Nifty is likely to consolidate going ahead.”

He also highlighted weakening sentiment beneath the surface: “Market breadth has been weakening since the last couple of sessions and hence the broader market is also suggesting some profit booking at higher levels.”

Dollar Strength Adds Pressure
She further noted, “There has been a sharp resurgence in the Dollar index, supported by a sentiment shift from US President Trump, who now appears more favorable towards Fed Chair Jerome Powell. This has lent strength to the dollar, reinforcing its dominance in currency markets and putting pressure on Indian equities.”

Earnings in Focus
Investor attention is also centered on Q4 results from Reliance Industries, Maruti Suzuki India, RBL Bank, and Tata Technologies, which are scheduled for release today. Market participants are watching whether earnings can provide a cushion against the global and domestic headwinds.

As the day progresses, investors will keep an eye on diplomatic developments around the India-Pakistan tension and any signals from the government that may calm nerves on D-Street.