Why did Dalal Path turn red on Friday? Sensex fell by more than 1000 points

Why did the stock market fall?

The fall was due to widespread selling across all sectors due to volatility in the global market. This weakness comes after other Asian markets, which recorded a huge fall this morning due to several factors. This includes a strong dollar, a rise in US treasury yields and disappointment in the Chinese economy.

Sharp fall in metal shares

Uncertainty over China’s stimulus plans led to a sharp decline in shares of metal companies, which fell more than 2% in early trade. However, all 13 major sectors declined. At 10:30 am, the Sensex was at 80,266, down 1,023 points or 1.3% and the Nifty was at 24,237, down 311 points or 1.3%. About 740 shares advanced, 2,493 shares declined and there was no change in 93 shares.

Outcry in Asian markets too

VK Vijayakumar, chief investment strategist at Geojit Financial Services, said the strengthening of the dollar is a major cause for concern as it may increase imported inflation. A risk aversion trend was seen in all Asian markets. China’s Shanghai Composite, Japan’s Nikkei 225 and Hong Kong’s Hang Seng index fell 1-2%.

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Hope of interest rate cut in America ends

Treasury yields posted their biggest weekly rise this year, dashing expectations of a major US interest rate cut in 2025. Apart from this, a promise was made at a high level meeting in Beijing to boost credit and consumption. Due to this, Chinese shares fell. With Donald Trump’s return to power, concerns are growing about new US trade tensions.

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