Market Uncertainty Due to Trump's Trade Policy Stance: The market experienced significant downturns largely due to concerns surrounding U.S. President Donald Trump's trade policies. Investors are on edge as Trump's inconsistent stance on trade tariffs has caused uncertainty in the global markets. His recent comments about imposing tariffs on neighboring countries, particularly Mexico and Canada, raised fears of inflation and economic instability. These concerns have dampened investor confidence, leading to widespread sell-offs in both domestic and international markets. Market participants are also apprehensive about a potential overheating of the U.S. economy and the effect this might have on global trade, currency exchange, and bond markets.

Significant Losses in Zomato and Other Major Stocks: Zomato, one of the high-profile stocks on the Indian market, faced a substantial decline, falling over 11% following disappointing quarterly earnings. The company's December quarter net profit dropped by 57% year-on-year, adding significant pressure on the stock market, contributing 150 points to the Sensex fall. Other large companies, including Reliance Industries, ICICI Bank, State Bank of India (SBI), and Mahindra & Mahindra (M&M), also saw considerable losses, collectively accounting for a major portion of the Sensex's decline. These high-profile losses have exacerbated the overall market downturn, highlighting a trend of underperformance in key sectors.

Corporate Earnings and Sector Performance: The earnings season has failed to provide much-needed optimism to the markets. Projections indicate that Nifty50 companies are expected to report a modest 3% year-on-year growth in earnings per share (EPS) for the third quarter, which has contributed to a lack of investor confidence. While sectors like capital goods, healthcare, and telecom are expected to report healthy profit growth, others, particularly metals, chemicals, consumer staples, banks, and oil & gas, are expected to underperform. Initial reports from corporate results have been underwhelming, with many companies showing stagnant profits despite moderate revenue growth. This has raised concerns about the broader health of the Indian economy, which in turn has affected market sentiment.