Why is Stock Market Falling Today? Sensex Down 405 Pts, Nifty Below 24,000 Mark | Key Reasons Explained

Indian Stock Market Today: The Indian stock market opened lower on Thursday, April 9, after Nifty and Sensex ended higher in the previous session after the announcement of the Iran-US ceasefire. The weak stock market opening coincided with weaker sentiment prevailing across the Asian stock market.

Nifty 50 opened lower on Thursday and was down 134 points and as down 23,862 points. Likewise, BSE Sensex was down close to 727 points at 76,835 points at 9:53 am.

Why Market Is Falling Today?

The sharp reversal in Nifty 50 and Sensex gains minutes after United States President Donald Trump hinted that situation between Iran and the US will remain tensed until a real pact is reached.

"All U.S. Ships, Aircraft, and Military Personnel, with additional Ammunition, Weaponry, and anything else that is appropriate and necessary for the lethal prosecution and destruction of an already substantially degraded Enemy, will remain in place in, and around, Iran, until such time as the REAL AGREEMENT reached is fully complied with," read a social media post by Donald Trump.

He also warned that if the pact is not finalised between the two nations, the US will resume its attack on Iran.

"If for any reason it is not, which is highly unlikely, then the "Shootin' Starts," bigger, and better, and stronger than anyone has ever seen before. It was agreed, a long time ago, and despite all of the fake rhetoric to the contrary - NO NUCLEAR WEAPONS and, the Strait of Hormuz WILL BE OPEN & SAFE. In the meantime our great Military is Loading Up and Resting," Trump added.

Donald Trump's recent remarks underscore that uncertainty continues to loom, with tensions in West Asia still fragile and capable of escalating at any moment if the US and Iran fail to reach a final agreement.

"Weakness witnessed in the benchmark indices, Nifty and Sensex, is primarily due to the negative cues in the international market and the cautious stance of investors. The uncertainty over the interest rates globally, mixed economic indicators, and continuous FII selling have been causing concern for the markets," explained Pranav Koomar is the Founder and CEO of PlusCash.

Profit Booking

Decline in Nifty and Sensex today came after the key benchmark indices saw a strong upside move on Wednesday. BSE Sensex and Nifty 50 ended more than 3.5% higher in the past trading session as investors cheer the Iran-US ceasefire development.

"Booking of profits after an upward surge in the markets is also a factor affecting the market trend. It seems that volatility would continue to dominate the market trend in the coming days, with global cues becoming the determining factors," Koomar added.

The BSE Sensex surged by 2,983 points to settle at 77,599.66, marking a gain of 4.00%, while the Nifty 50 climbed 889 points to close at 24,012.95, up 3.85%.

Sectorally, gains were broad-based, with all indices ending in the green. Auto and Realty led the rally with gains of over 6%, while Consumer Durables, Oil & Gas, Telecom, Infra, PSU Banks, and Private Banks advanced in the range of 3-5%.

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