Stock market crash today: Nifty50 ends below 24,700; BSE Sensex down over 590 points - top 5 reasons for fall

Stock market crash today: Nifty50 and BSE Sensex, the Indian equity benchmark indices, extended their losing streak on Monday. While Nifty50 went below 24,650 intraday, BSE Sensex tanked over 700 points. Nifty50 ended the day at 24,680.90, down 156 points or 0.63%. BSE Sensex ended at 80,870.48, down 593 points or 0.73%.The decline was attributed to poor quarterly results, US trade talks uncertainty, IT sector layoffs, and ongoing foreign investor withdrawals affecting market confidence.The decline extended to mid-cap and small-cap indices, which fell by 1% and 1.1% respectively, demonstrating widespread market weakness across all segments.1. India-US trade discussions uncertaintyThe discussions between India and the United States are ongoing, specifically regarding tariff reductions on agricultural and dairy products, reducing the likelihood of an interim agreement before US President Donald Trump's August 1 deadline.Conversely, the United States and European Union reached a framework agreement during the weekend, alleviating broader trade concerns whilst highlighting India's diplomatic challenges."Negative news and triggers have pushed the Nifty to a one-month low, and market sentiments continue to be unfavourable. While trade deals with Japan and EU, thought to be difficult initially, have happened, the much expected India-US trade deal is even now hanging fire. This has impacted market sentiments," said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments.2. Subdued Q1 PerformanceCorporate performance dampened market sentiment, as Kotak Mahindra Bank shares fell 7.8% to Rs 1,960.1 following reduced quarterly profits and declining key metrics. The bank's performance heavily impacted the Nifty 50, whilst causing the Nifty Bank index to decrease by 1%.The bank reported increased gross non-performing assets at 1.48% compared to 1.39% year-on-year, alongside reduced net interest margin of 4.65% from 5.02%. This decline resulted from Reserve Bank of India's interest rate reductions, where lending rates decreased more rapidly than deposit rates.Axis Bank's recent underwhelming results earlier this month raised additional concerns regarding asset quality across financial institutions."Q1 results... are not yet indicating any major positive surprises. Investors have to be cautious and stock-specific in this weak phase of the market. There is safety in largecaps banks like ICICI Bank and HDFC Bank which have come out with the best results in the segment with prospects of improvement going forward," said Dr. Vijayakumar.3. Technology Sector Stocks TankLarge-cap IT shares continued downward after Tata Consultancy Services (TCS) announced workforce reduction of approximately 2%, affecting 12,000 employees globally, amidst reduced demand. The Nifty IT index reduced by 1.6%, contributing to the sector's 24% decline from its peak in 2025.TCS shares decreased 1.7% to Rs 3,081.60 following their statement: "The deployment of some associates may no longer be feasible under current market conditions." The company clarified this decision was based on realignment requirements rather than AI implementation.Other technology companies experienced similar declines: Wipro (-3.5% to Rs 250.05), Infosys (-2.2% to Rs 1,482.50), HCL Tech (-1.1%), and Tech Mahindra (-1%)."The sharp cut in the IT index has been dragging the market down, and there is no respite in this in view of the 2% cut in its global workforce announced by TCS. However, midcap IT names hold promise in view of their strong growth prospects," said Dr. Vijayakumar.According to an ET report, Jefferies highlighted broader implications, stating: "TCS' move to cut 2% of its workforce may lead to execution slippages in the near-term and higher attrition in the longer-run for the firm and reflects a weak demand environment for the sector."The analysts noted that TCS's recent actions, including delayed wage increases and restricted non-billable periods, indicate ongoing cost management efforts. "The ongoing lay-offs will hurt employee morale and could potentially lead to execution slippages. In the longer run, such policies could drive a sharp rise in attrition, similar to what was seen at Cognizant during 2020–22."4. Sustained Foreign Capital OutflowsForeign Institutional Investors (FIIs) continued as net sellers, with equity sales of Rs 1,979 crore on July 25, extending their selling streak to five consecutive sessions. Meanwhile, Domestic Institutional Investors (DIIs) acquired equities valued at Rs 2,138 crore."FII selling of Rs 13,552 crores in the cash market last week has added to the weakness in the market," stated Dr. Vijayakumar.5. Technical Analysis Shows Increased PressureThe technical outlook indicates continued downward pressure with critical support levels under observation."The major supports are at 24,450 and 24,000, but we will begin the week expecting downsides to not extend beyond the 24,750–650 region. A swing higher is expected this week, but oscillator divergences seen in intraday periodicities that have signalled the same are yet to be visible in larger time frames," stated Anand James, Chief Market Strategist, Geojit Investments."This gives room for downside momentum to prevail over for some more time. However, direct rise above 24,922 could initiate short covering. In such a scenario, 25,324 may be played for, even though 25,000 region may resist initially," said James.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)