Stock market analysts believe, the share market fell due to a combination of factors like global economic concerns, rising interest rates, foreign investor sell-offs and weak domestic earnings. The overall fall was also caused by weakening of rupee, and negative market sentiment.
FIIs Sell $10 Billion In 30 Days!
According to the analysts, the FIIs played the most important role in damaging the sentiments and pulling the market down.
They sold Indian stocks worth $10 billion in the first 30 days of 2025. It led to massive outflows of the money invested in the stock market.
Market observers believe, the FIIs influenced largecap stocks as well as the prices of gold and silver.
Corporate Results Dampen Sentiments
The corporate results also proved to be a dampener to the sentiment of the market. Though the earnings of most of the companies in the Q3 were a little bit better than the dismal earning of the Q2, these were less than the expectations.
Falling Rupee Pulls Down Sensex, Nifty
The weakening of Indian rupees contributed largely to the fall of the stock markets. Even after breaching the level of 86 against the US Dollar, it has bot stoppped. Indian rupee has crossed the 87-mark against the greenback.
These factors were the main reasons behind the collapse of the stock market.
What has happened to the Indian share market that the BSE sensitive index Sensex crashed a whopping 10,000 points in less than four months?
Does it reflect the state of affairs of the Indian economy?
Did the share market of India come under the bearish attack of international players like the Foreign Portfolio Investors and the Foreign Institutional Investors? BSE Sensex Falls 10,000 Points
The BSE Sensex touched the record level of 85,978.84 on September 27, 2024. However, it nosedived to 75,939 on February 14, 2025.
Earlier Melt Down
Earlier on March 23, 2020, Sensex nosedived and registered a steep fall of 3,934.72 points or 13.15%. It was accompanied by the Nifty 50 which plunged 1,135 points or 12.98%.
The coronavirus-led lockdowns across the world triggered fears of a recession and pushed the BSE Sensex to 7610.25. It is the lowest point since 2016.
In yet another steep fall, the BSE Sensex Sensex fell by 2,919.26 points or 8.18% on March 12, 2020. It was recorded as the worst continuation of the week in the history.
On the other hand, the Nifty-50 slipped 868.2 points or 8.30% amid the World Health Organisation (WHO) declaring the Coronavirus outbreak as a “pandemic”.