While the Sensex closed at 85,762.01 on January 2nd, it slipped to 83,506.79 intraday on Friday. Similarly, the Nifty also came under pressure and slipped below 25,700.

Stock market in turmoil amid Trump's threat, Sensex down 2000 points and Nifty down 2% in 5 days, 5 reasons why

Stock Market News: The Indian stock market has been under constant pressure for the past five trading sessions. Growing uncertainty about global trade, changing political developments in Washington, and geopolitical tensions have weakened investors' risk appetite. As a result, the BSE Sensex has fallen by more than 2,100 points in the past five days. While the Sensex closed at 85,762.01 on January 2, it slipped to 83,506.79 intraday on Friday. Similarly, the Nifty also came under pressure and slipped below 25,700.

1- Heavy selling by foreign investors

The biggest reason for this decline was heavy selling by foreign investors. Amid global uncertainty and a trend of capital outflows from emerging markets, foreign institutional investors (FIIs) sold shares worth ₹3,367.12 crore on January 8 alone. This continuous outflow weakened domestic investor sentiment and further pressured the market.

2- Trump's trade and tariff uncertainty

Another major reason is US President Donald Trump's uncertain rhetoric regarding trade and tariffs. His warning of a tough stance against countries, including India, for purchasing cheap crude oil from Russia has worried investors. A new bill is being discussed in the US, under which tariffs of up to 500 percent could be imposed on countries purchasing oil from Russia. Such concerns have created an atmosphere of fear in global markets as well as the Indian stock market.

3- Resultant talks between India and America

Additionally, the lack of concrete results in the India-US trade talks is a significant reason for the market's weakness. Despite six rounds of talks since March, no concrete agreement has been reached between the two countries. The Trump administration has already imposed a total of 50 percent tariffs on India, consisting of a 25 percent base tariff and a 25 percent penalty. India has called this unfair, but the lack of a resolution continues to worry investors.

4- Tension over oil prices

Rising tensions over oil prices have also been negative for the market. Investors are closely monitoring developments in Venezuela due to uncertainty over cheap oil supplies from Russia and heavy dependence on imports. Rising crude oil prices are expected to increase pressure on inflation and the current account deficit, posing risks to the stock market.

5-Falling Rupee

Amidst all this, the weakening of the Indian rupee has also increased investor concern. After falling nearly 4 percent last year, the rupee has now crossed the 91 mark against the dollar. Despite limited intervention by the Reserve Bank of India, the currency's continued decline has raised questions about foreign capital flows and market stability. Due to these factors, the Indian stock market is currently under pressure, and investors are adopting a cautious stance.