Share Market News / Chaos in the market! Market crashed due to these 4 big reasons, more fall or relief ahead?

Share Market News: Today, such a storm came in the Indian stock market that even big investors were shocked. The way large cap stocks—like Reliance, Tata Motors, Tata Steel, Infosys and HCL Tech—fell by 10%, it has created chaos in the market. In a single day, investors lost about Rs 19 lakh crore. This decline does not seem to be just a technical correction, but there are many big reasons hidden behind it, which can decide the direction of the market.

If you are also an investor, then obviously this question must be bothering you—will this decline stop here or is there still more to go down? Let us know the 5 major reasons for this decline in the market, and also what can happen next.

1. Global selling pressure

Former US President Donald Trump's tariff policies (Tariff Terror) have once again created a stir in the markets around the world. The Trump administration has not shown any leniency regarding import duty, due to which global investors are avoiding taking risks. This has had a direct impact on the Indian market as well. Investors sold shares in large quantities, causing the market to crash.

2. Fear of recession increased

Trump's aggressive trade policies have increased uncertainty in the global economic environment. Tariffs imposed on more than 180 countries have caused trade disruptions and instability. Due to this, investors fear that a global recession may occur once again. Experts believe that if this situation continues, economic slowdown may deepen in India as well.

3. Threat of inflation and impact on corporate profits

Imports have become expensive due to tariffs, which is likely to increase inflation. The rising cost will also affect the profits of companies. The purchasing power of consumers will decrease and demand in the market will weaken. This will work like a domino effect—low ​​demand, low profits, and ultimately a fall in shares.

4. Selling by foreign investors

Foreign portfolio investors (FPIs) have again started withdrawing money from the Indian market in April. So far, they have sold shares worth ₹13,730 crore. When big investors like FPIs exit the market, it also has a psychological impact, due to which domestic investors also panic. This selling is pushing the market further down.

5. Psychological breakdown

The market runs not only on data, but also on emotions. When large cap companies—which are considered safe and stable—record such a huge decline, panic spreads among small investors. This is what has happened now. Investors feel that nothing is safe, which is leading to more panic selling.

What next?

Market expert Siddharth Kunawala says that "the tariff cloud is looming over the Indian market. It may take some time for stability to return, but this decline can also become a golden opportunity for long term investors."

At the same time, expert Ayodhya Prasad Shukla believes that "it may take at least 2 to 3 months for the market to settle down. The effect of US tariffs will be seen on every sector of India, but the biggest blow may be to the auto and tech sectors."

Advice for investors:

• Don't panic, make a strategy.
• Consider investing from a long term perspective.
• Continue investing in quality stocks through SIP.
• It is better for small investors to avoid new purchases for now.
• Keep a list of fundamentally strong companies ready.