Sensex, Nifty Fall Today: Reasons Behind the Drop and Levels to Watch

On Monday, February 10, 2025, India’s stock markets continued their decline for the fourth consecutive day. The BSE Sensex dropped by 753 points, or about 1%, reaching a low of 77,106 points. Similarly, the Nifty50 index fell by 244 points to hit a low of 23,316. By the end of the day, the BSE Sensex closed down by 548 points, or 0.7%, at 77,312, while the Nifty50 ended 0.8% lower, losing 178 points, closing at 23,382.

Several large companies saw significant drops in their stock prices. Tata Steel, Power Grid, Zomato, NTPC, Reliance Industries (RIL), Bajaj Finance, Titan, IndusInd Bank, Tata Motors, HDFC Bank, Axis Bank, and Sun Pharma were among the biggest losers. Their shares dropped between 1% and 3.6%. On the Nifty, stocks like JSW Steel, Hindalco, BPCL, ONGC, Coal India, Shriram Finance, Cipla, Dr. Reddy’s, Adani Enterprises, and Trent were the worst performers.

In the broader markets, the Nifty MidCap index and the Nifty SmallCap index both fell by 2% on the NSE. One of the main reasons for the stock market’s decline today is the news about US President Donald Trump’s tariff plans. Trump is reportedly planning to impose a 25% tariff on all countries exporting steel and aluminum to the US. This news hurt investor sentiment, especially affecting the steel industry. The Nifty Metal index dropped nearly 3%, with companies like Vedanta, SAIL (Steel Authority of India), Tata Steel, and Jindal Steel seeing large losses in their stock prices.

Trump also mentioned that he would introduce “tit-for-tat” tariffs against countries that have imposed tariffs on the US. This follows China’s decision to increase tariffs on US goods, which includes a 15% tariff on coal and liquefied natural gas, and 10% on products like crude oil, agricultural machinery, and cars. This news added more pressure on the markets. Investors were selling shares across almost all sectors. The Nifty FMCG index, which includes companies that make essential goods, was the only sector showing some gains, up by 0.5%. On the other hand, sectors like metals, real estate, media, pharma, and banking were hit hard. The Nifty Metal index fell by 3%, the Nifty Realty index by 2.47%, the Nifty Media index by 2%, and the Nifty Pharma index by 1.8%.

Another factor affecting the markets was the rise in bond yields, which increased by 2% to 6.83% on Monday. Bond yields rise when investors feel more risk-averse and prefer safer options like bonds instead of stocks. The Reserve Bank of India (RBI) cut the repo rate by 25 basis points (bps) on February 7, 2025, but did not announce any further measures to improve liquidity in the financial system. This disappointed investors, who were hoping for more action from the RBI.

Foreign institutional investors (FIIs) have been selling stocks in India for several months. In February alone, they sold stocks worth over Rs 10,179 crore. A major reason for this is the strengthening of the US dollar and the weakening of the Indian Rupee. The Indian Rupee hit a record low of 87.92 against the US dollar, which made investing in Indian stocks less attractive for FIIs.

According to technical analysts, important support levels for the Nifty index are 23,400 and 23,250. If the Nifty falls below these levels, it could drop further toward 23,000. On the upside, resistance levels are at 23,800, 23,900, 24,000, and 24,250. For the market to move higher, there needs to be strong buying activity. Until then, investors are advised to book profits whenever possible. The market is expected to consolidate in the short term and may remain within the range of 23,250 to 23,800.

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