The start of the new year was very poor for the stock market. While the Nifty broke 1.5%, the Sensex also saw a significant decline. On April 1, the Sensex fell 1390 points to 76024 and the Nifty 353 points closed at 23 thousand 165 levels.

When there is such a big decline in the Sensex in one day, there is a constant question in the minds of traders and investors that what is the real reason for this devastation in the stock market? Let us know the five major reasons that have done the work of submerging the stock market on April 1.

The biggest reason for the market’s mood was that the date later a day is April 2. President Trump is going to install reciperook tariff from this date. The White House has announced that it will be implemented with immediate effect.

The fear of tariff

That is, the country which has imposed tax in the American product, America will now levy those countries as much on the products. Because of this, not only the Indian market but the markets of the world appeared nervous. President Trump has already imposed these tariffs against many business partners of America & Nbsp; including Canada, Mexico and China.

Along with all this, you are also planning to put extra duty on automobile, steel, aluminous, copper, pharma and semiconductor. VK Vijay Kumar, Chief Investment Strategist of Jiojit Service, said that the stock markets around the world are currently waiting for Trump’s reciperook tariffs."Text-Align: justify;"> He said that they want to understand which companies, which companies and sectors will affect this tariff. Only after the announcement of the tariff will its real impact to be understood.

threat of recession

The second reason for the decline in the stock market has increased the risk of the US economy going into the recession. Because of this, Indian and global markets have been scared. Brokerage firm Goldmen Sachs has increased the possibility of recession in America to 35%. It was just 20%.

profit booking

Sensex and Nifty have increased by 5.4% during the last eight days. Because of this, the return of 2025 of these two index had become positive so far. After this boom, many investors have made profit booking, due to which selling started in large tap shares.

The Chief Investment Strategist of Jiojit Service said that in March 2025, Sensex and Nifty have given a return of about 6.3%. This is better than most countries of the world. He said that after this fast, there was an expectation of profit booking and exactly the same.

oil price

The increase of crude oil prices in the international market also weakened the market’s sentiment. Brent crude prices rose 1.51% to $ 74.74. Due to this, concerns about India’s import bill have started increasing. Increasing crude oil prices damages the domestic market, because India is one of the biggest buyers of crude oil.

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