Sensex tumbles 600 points today. 3 reasons why stock market is falling
India TodayBenchmark stock market indices tumbled again on Wednesday as the turbulent run on Dalal Street continued after a 1-session gain. Multiple factors were behind today’s nervousness on Dalal Street, including weaker growth estimates for FY25, worries over Q3 corporate earnings and the likelihood of fewer US rate cuts. Q3 CORPORATE EARNINGS One of the key triggers behind today’s decline is nervousness among investors over the outcome of Q3 corporate earnings. FEWER US RATE CUTS LIKELY Another reason behind today’s decline was a sharp tumble in technology and financial stocks, which fell after US data signalled at a stable economy and labour market, diminishing prospects of future rate cuts by the Federal Reserve. GDP GROWTH ESTIMATE SLIPS A day ago, the first advance estimates released by the government indicated that GDP growth in FY25 may slow down sharply to 6.4%, marking a 4-year low.