Sensex plunges over 600 pts, Nifty sinks below 23,400; why are markets falling today?

The Indian stock market tumbled for the fourth consecutive session on February 10, with benchmark indices sliding sharply as US President Donald Trump’s tariff warnings spooked investors.

Indices bleed, mid- and small-caps hit harder

The BSE Sensex crashed 671 points to an intraday low of 77,189.04, while the Nifty 50 declined nearly 200 points to 23,357.60. The broader market suffered even more, with the BSE Midcap and Smallcap indices plunging up to 2 per cent. The total market capitalisation of BSE-listed firms shrank by nearly Rs 5 lakh crore to Rs 419 lakh crore.

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Trump’s tariff threat rattles global sentiment

Investor confidence took a hit after Trump reiterated plans to impose reciprocal tariffs on multiple nations, including levies on steel and aluminium imports. The move is expected to stoke inflation and could limit the possibility of interest rate cuts.

Key stocks and sectoral movements

Tata Steel, Power Grid, NTPC, Bajaj Finance, Reliance Industries, and HDFC Bank led the decline, while M&M, Bharti Airtel, Adani Ports, and SBI managed to hold gains. Sectorally, FMCG and PSU Bank indices showed resilience, but Metal, Pharma, Realty, and Healthcare indices dropped 1 to 2 per cent.

Rupee slumps to record low, crude edges up

The rupee hit a historic low of 87.95 against the US dollar as risk-off sentiment intensified. Meanwhile, Brent crude futures climbed to USD 75.06 per barrel, reflecting concerns over global trade disruptions.

What’s next for the market?

Experts believe the market will remain range-bound in the absence of strong domestic catalysts. "With the dollar index above 108 and US bond yields exceeding 4.4 per cent, foreign investors may continue selling on rallies," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Investors are advised to focus on quality large-cap stocks and avoid overvalued mid- and small-caps amid ongoing volatility.