Market crash: Why Sensex fell 1,000 points in afternoon session today 

The Indian market saw a deep cut in the afternoon session on Thursday as investors await the clarity on tariff solution between the US and other major economies, including India. 

Another factor, which dampened market sentiment is US President Donald Trump's tax and spending bill, which raised fears that it will lead to an increase in the US debt and further slow US economic growth.

"Trump's tax bill is expected to be voted on this week in Congress, and investors are worried it could add about $3.8 trillion to the $36 trillion US debt pile," reported Reuters.

Rising tensions between Israel and Iran also dampened sentiment on the Dalal Street. According to reports, US has gathered new intelligence, suggesting that Israel was gearing up for a potential military strike against Iranian nuclear facilities.

Lack of fresh triggers in the market gave bears an upper hand in today's session.    

A steady rise in coronavirus cases in few of the southeast Asian countries prompted investors to resort to heavy selling on Dalal Street. The ongoing tepid Q4 earnings season added more to the misery of investors in the Indian equity market. 

Sensex slipped 1,005 pts to 80,591.68 and Nifty fell  275 points to 24,537. Market cap of the BSE-listed firms fell to Rs 438 lakh crore in the current session against the market cap of Rs 441.09 lakh crore on Wednesday.

This resulted in a loss of Rs 3 lakh crore investor wealth in the current session. The indices have resumed correction after a day of pause in the previous session. Before that, the Indian market fell for three straight sessions. 

M&M, PowerGrid, NTPC, ITC, Nestle India, Tata Motors, Tech Mahindra, RIL and TCS were the top losers on Sensex, falling up to 2.84% on Thursday. Bharti Airtel and IndusInd Bank shares were the only Sensex gainers, rising up to 0.54%.     

Market breadth was negative with 1,511 stocks trading higher against 2307 stocks falling on BSE. 185 shares were unchanged. 

Previous session 

Sensex jumped 410.19 points or 0.51 per cent to close at 81,596.63. During the day, the 30 stock index surged 835.2 points or 1.02 per cent to 82,021.64.