Stock market crash today: BSE Sensex ends 857 points down; Nifty50 below 22,550 - top reasons bears growled

Stock market crash today: BSE Sensex and Nifty50, the Indian equity benchmark indices, tanked in trade on Monday. While BSE Sensex crashed 900 points, Nifty50 went below 22,550 intraday. BSE Sensex ended the day at 74,454.41, down 857 points or 1.14%. Nifty50 ended at 22,552.50, down 243 points or 1.07%.
American consumer confidence hit its lowest point in 15 months during February, with inflation expectations rising amidst worries regarding President Donald Trump's proposed tariff policies, as indicated by recent data.
Asian markets largely declined, following the negative performance on Wall Street from Friday, driven by growth-related concerns.
Shares of Zomato, HCL Tech, TCS, Tech Mahindra, HDFC Bank, and IndusInd Bank started lower, whilst Sun Pharma, Maruti, M&M, Bajaj Finserv, and Nestle India registered initial gains.
In sectoral performance, the Nifty IT index fell by 1.8%, with LTTS, Persistent Systems, and Coforge leading the decline. Additionally, Nifty Financial Services, Media, Metal, PSU Bank, Realty, and Consumer Durables indices all opened more than 1% lower.

1) Consumer Confidence Declines in US
Global markets retreated following an unexpected reduction in US services activity, influenced by tariff concerns and rising costs. Reports indicated the White House was urging Mexico to implement tariffs on Chinese goods.
American consumer confidence decreased significantly in February, reaching its lowest point in 15 months as inflation outlook increased. The University of Michigan's Consumer Sentiment Index reduced to 64.7 from 71.7 in January, below analysts' forecasts. Citizens voiced worries about how President Donald Trump's tariff policies might affect their spending capacity.
2) Economic Growth and Inflation Concerns
The US faces worries about concurrent economic slowdown and rising inflation, creating market uncertainty. This situation affects export-focused industries, including Indian IT, whilst making emerging markets less desirable for international investors, who might prefer secure investments like US dollar and treasury bonds.
The Nifty IT index fell 1.8% today, with LTTS, Persistent Systems, and Coforge showing losses.
3) Markets Await Inflation Report
Investors remain cautious before Friday's release of the Federal Reserve's main core inflation indicator. Analysts expect the figure to decrease to 2.6% from 2.8%, though tariff-related concerns might overshadow these results.
Further complexity arises as nine Fed officials are due to speak this week, likely maintaining a prudent approach regarding interest rate reductions.
4) Ongoing Foreign Investment Outflow
Foreign portfolio investors have withdrawn Rs 1,01,737 crore net from Indian equities in 2025 to date (Friday closing), as per NSDL figures.
"The market is facing headwinds from relentless FII selling and global uncertainties relating to Trump tariffs," said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.