The Indian stock market experienced a significant downturn today, with the Sensex plummeting 800 points and the Nifty 50 dipping below 24,700. Several factors contributed to this decline, creating a bearish sentiment among investors.

1. Impact of Trump's Trade Policies:

One of the primary reasons for the market fall is the resurgence of trade-related anxieties following announcements from the US. US President Donald Trump's recent statement regarding a 100% tariff on branded pharmaceutical imports has particularly shaken investor confidence. This move has had a detrimental effect on pharmaceutical stocks, with companies like Sun Pharma experiencing significant losses. The Nifty Pharma index also plunged as a result of this announcement. In addition to pharmaceuticals, tariffs on furniture and heavy trucks have also contributed to the negative market sentiment. The indication of likely tariffs on Canada and Mexico suggests that the tariff hike policy will be implemented gradually.

2. Weak Global Cues:

The Indian stock market's downward trend mirrors weak cues from global markets. US stock markets closed lower on Thursday, with declines across broader S&P 500 sectors, as economic reports created uncertainty regarding the Federal Reserve's interest rate reduction timeline. Asian equities also declined at the opening, influenced by robust US economic data and varied comments from Federal Reserve officials regarding rate cuts. These global factors have collectively raised concerns about high valuations on Wall Street, contributing to the risk-averse sentiment in the Indian market.

3. Disappointing Corporate Earnings:

Investor sentiment has also been negatively impacted by disappointing corporate earnings for the third quarter. Weaker-than-expected results reported by most companies have led to a sell-off in the markets.

4. Technical Indicators and Investor Sentiment:

Technical analysis of the Nifty 50 index reveals a bearish trend, with the formation of a "bearish candle" on the daily chart, characterized by a lower high and lower low. This pattern suggests a continuation of the decline. The derivatives landscape reflects caution, with aggressive call writers overshadowing put writers. A sharp build-up of contracts at the 25,000 strike has established this level as a significant resistance. The Put-Call Ratio (PCR) has also slipped, signaling a bearish bias.

5. Foreign Fund Outflows:

Persistent foreign fund outflows have added to the market's woes. Concerns regarding potential changes to US H-1B visa rules are also weighing on the market, particularly for Indian IT companies.

In summary, the Indian stock market is currently experiencing a downturn due to a combination of factors, including renewed trade war anxieties triggered by Trump's tariff announcements, weak global cues, disappointing corporate earnings, bearish technical indicators, and continuous foreign fund outflows.