Stock Market Update 2 April 2026: Sensex, Nifty Fall Around 2% After A Solid Wednesday

After ending the previous trading session on a positive note, the Indian stock market indices fell again on Thursday, 2 April 2026.

At around 9:20 AM, the Sensex was down by more than 1,390 points to trade at 71,722.92. The Nifty 50 was also trading lower by around 2% at 22,224.25. The sharp sell-off wiped out more than ₹9 lakh crore from the total market capitalisations of all companies on the Bombay Stock Exchange (BSE).

The primary reasons attributed to the downfall include Trump’s renewed warning to hit Iran “extremely hard”, rising crude oil prices, continued FII selling, and weak global cues.

How Other Indices Are Performing?

Not just the Sensex and the Nifty 50, but most other Indian indices were in the red during early trading on Thursday.

At around 9:20 AM, Bank Nifty was down by around 2.7% to trade at 50,068.50. The Fin Nifty was also down by around 2.5% to trade at 23,900.90.

Heavy selling pressure was also felt across stocks from various sectors.

Most of the regulars, including Reliance Industries, HDFC Bank, Bharti Airtel, SBI, and ICICI Bank, were all trading lower by more than 1% from the previous closes.

Reasons Behind The Market Downfall?

Here are a few reasons that may have caused today’s slump:

1) Trump’s Warning To Iran

The US President, Mr. Donald Trump, said they are planning to hit Iran “extremely hard” in the upcoming weeks. During an address to the nation, he said the US forces will finish the job in Iran within two to three weeks.

2) Rising Crude Oil Prices

After a nominal drop, the crude oil prices rose sharply on Thursday. Brent crude futures surged by 4% to $104.9 per barrel. WTI crude also gained 3% to rise to $103.3 per barrel. Trump’s comments suggesting heightened attacks on Iran have created fresh fears among investors.

3) Continued FII Selling

Foreign Institutional Investors (FIIs) continue to offload their holdings in the new financial year. On Wednesday alone, they sell shares worth ₹8,331 crore.

4) Technical Reason

A few technical reasons may have also contributed to the drop in Indian stock market indices on Thursday. Analysts believe the Nifty 50 is currently unable to sustain above 22,770 due to underlying weakness.

5) Banking Stocks Drop

After the Reserve Bank of India (RBI) tightened speculative activity in the rupee by mandating lenders to close their contracts in open markets, banking shares dropped sharply on Thursday. At around 10 AM, Bank Nifty was down by more than 2.5%.

Also Read - V-Mart Reports 24% Revenue Growth In Q4 As Same-Store Sales Hold Steady

Investor Takeaway

Markets are behaving erratically. The downfall today has dampened the mood again after the positive Wednesday. Investors must wait for clearer signals before taking fresh positions.

Sources:

The Economic Times

Moneycontrol