- Trump tariff, FII selling: Why Sensex fell 1200 pts;

From Donald Trump’s tariff imposition to continued FII selling, here are key reasons for the market crash on February 11, 2025

Indian equities slumped in trade on Tuesday, February 11, 2025. The BSE Sensex crashed 1,281 points or 1.65 per cent and logged an intraday low at 76,030.59. Meanwhile, the National Stock Exchange (NSE) Nifty breached the 23,000 level and dropped 395 points or 1.68 per cent to the day’s low at 22,986.65.

The 30-share Sensex closed 1,018.2 points or 1.32 per cent lower at 76,293.6 and Nifty50 closed 309.8 points or 1.32 per cent lower at 23,071.8.

At close, on BSE, Zomato, Tata Steel, Bajaj Finserv, Tata Motors, Power Grid were among the top laggards. Similarly, on NSE, Eicher Motors, Apollo Hospitals slipped over 6 per cent, Shriram Finance was down over 4 per cent, Bharat Electronics (BEL) and Coal India were down over 3 per cent and were the top five losers.

Here are a few reasons why the market crashed on February 11, 2025:

Trump tariff worries

The tariff hike by US President Donald Trump on steel and aluminum imports by a flat 25 per cent is raising worries for the investors. Not just that, his plans to impose ‘reciprocal tariffs’ on other countries over the next two days is also worrisome.

Global brokerage Nomura believes reciprocal tariffs by Trump could hurt emerging Asia such as India, China and Thailand more than developed Asian economies (Hong Kong, Singapore).

This move is negative for India as US is the country’s largest export destination which accounts for around 18 per cent of India’s total exports (around 2.2 per cent of gross domestic product, as of fiscal 2023-34, i.e. FY24). With the India-US trade surplus rising in recent years to a high of nearly $38 billion in 2024.

That said, last seen, the Nifty Metal index fell over 1 per cent, with JSW Steel, Hindustan Zinc, Ratnamani Metals, NMDC down over 4 per cent.

Q3 results impact

Eicher Motors shares slipped 6.8 per cent in trade, logging an intraday low at Rs 4,966.15 per share on BSE, after the company reported weak margin, coupled with profit booking. Eicher Motors posted weaker-than-expected earnings before interest, tax, depreciation and amortisation (Ebitda) margin, which contracted 190 basis points (bps) to 24.2 per cent in Q3FY25, from 26.1 per cent in Q3FY24.

Besides, Apollo Hospitals shares slipped 5 per cent to an intraday low of Rs 6,285 per share on BSE. The fall in the Apollo Hospitals share price came amid profit booking after the company posted strong Q3 results, analysts said.

Apollo Hospitals’ consolidated profit rose 51.8 per cent year-on-year (Y-o-Y) to Rs 372.3 crore in Q3FY25, from Rs 245.3 crore in the same quarter previous fiscal year (Q3FY24).

The revenue from operations climbed 13.9 per cent Y-o-Y to Rs 5,526.9 crore in Q3FY25, from Rs 4,850.6 crore in Q3FY24.

FII selling

Foreign Institutional Investors (FIIs) are continuously selling Indian equities, which is denting market sentiments. On Monday, FIIs sold Rs 2,463.72 crore worth of equities. As per NSDL data, FIIs have sold Rs 78,027 crore in January and so far they have sold Rs 85,841 crore worth equities.

“FIIs would wait for local currency to stabilise before committing any significant investments. Therefore, their selling may continue till March 2025,” said Chokkalingam G, Founder, Equinomics Research Pvt Ltd.

Weakness in broader markets and sectoral indices

BSE Midcap and Smallcap slipped over 3 per cent each in trade. Last seen, among the BSE Midcap players, individually, PB Fintech, Uno Minda, Escorts Kuborta, Lupin slipped over 6 per cent, JSW Infra, Voltas Oberoi Realty, Torrent Power, KPIT Tech lost over 5 per cent.

On the BSE Smallcap index, among others, NGL-Fine Chemical dropped over 15 per cent, Goldiam International was down nearly 13 per cent, Aeroflex Industries were down over 12 per cent, Kfin Technologies, Zaggle and Senco Gold were down over 9 per cent.

On the sectoral front, broad-based selling was seen. Nifty Realty slipped over 3 per cent, Nifty Auto, Nifty FMCG, Nifty Pharma, Nifty Oil & Gas, Nifty PSU Bank over 2 per cent.

Mixed global markets

In Asia, Chinese stocks traded lower after Trump imposed tariffs on steel and aluminum imports with mainland China CSI 300 down 0.40 per cent, Shanghai down 0.12 per cent and Hong Kong’s Hang Seng down over 1 per cent. Japan’s Nikkei was flat with positive bias.

Meanwhile, in the European region, Germany’s Dax was flat with positive bias, United Kingdom’s FTSE was up 0.15 per cent and French stock market index CAC was up 0.12 per cent.

Technical view

The Nifty50 faced resistance around 23,450, near the Central Pivot Range (CPR), but failed to break above it. This rejection at CPR signals continued bearish sentiment among traders. Additionally, the ADX (Average Directional Index) formed a negative crossover, reinforcing the weakness. This suggests that sellers remain in control, and further downside pressure could persist unless a reversal occurs,” said Jigar S Patel, senior manager – technical research analyst, Anand Rathi Shares and Stock Brokers.

Patel added: For bullish sentiment to return, Nifty 50 must close above 23,450, which would indicate strength and potential upside continuation. Until then, traders should be cautious, as further declines or consolidation within lower levels could continue in the short term.

Disclaimer: Moneywealth research provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

SEBI registered research analyst

Stock market

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From Donald Trump’s tariff imposition to continued FII selling, here are key reasons for the market crash on February 11, 2025

Here are a few reasons why the market crashed on February 11, 2025:

Trump tariff worries

Q3 results impact

FII selling

Weakness in broader markets and sectoral indices

Mixed global markets

Technical view

Author: admin

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Trump tariff, FII selling: Why Sensex fell 1200 pts; Nifty breached 23,000?

From Donald Trump’s tariff imposition to continued FII selling, here are key reasons for the market crash on February 11, 2025

Here are a few reasons why the market crashed on February 11, 2025:

Trump tariff worries

Q3 results impact

FII selling

Weakness in broader markets and sectoral indices

Mixed global markets

Technical view

Author: admin

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