Stock market news: Why did Sensex fall over 3,000 points in eight days? Explained with five crucial reasons

Stock market news: The Indian stock market has fallen for the last eight sessions. Among the key benchmark indices, the BSE Sensex has fallen from 78,583 to 75,439 (today's intraday low), logging a 3,144 points loss in the last eight successive sessions. The Nifty 50 index has tanked from 23,739 to 22,774, recording a 965-point loss in this time horizon. However, the Bank Nifty index sustained initially but finally succumbed to the selling pressure and nosedived from 50,382 to 48,719, registering a 1,663 points loss in six straight sessions. The selling on Dalal Street is across segments as the broad market witnessed sharp selling in this recent stock market crash. The BSE Small-cap index crashed 5,360 points or over 10.60 per cent, whereas the BSE Mid-cap index tanked 3,878 points or 8.95 per cent.

Stock market crash: Top 5 reasons

According to stock market experts, the Indian stock market has been falling for five crucial reasons: Donald Trump's tariff policy, weakness in the Indian National Rupee (INR), average Q3FY25 results season, FY24 nearing its end, and continuous FIIs' selling.

1] Donald Trump's tariff policy: “There is complete economic uncertainty due to the protectionist policy adopted by the US President Donald Trump. Despite the Modi-Trump meeting, the US President continued with the reciprocal tariff policy, which has not gone down well across global bourses,” said Avinash Gorakshkar, Head of Research at Profitmart Securities.

2] Weakness in Indian rupee: “The continuous fall in the Indian rupee against the US dollar is also a major reason for DIIs waiting for stability in the national currency, especially after the RBI's rate cut announcement. They are doing this because DIIs don't want a fresh position in their portfolio as weak rupee is expected to actuate FIIs' further selling as they move from equity to currency and bond markets,” said Avinash Gorakshkar of Profitmart Securities.

3] Fast-ending financial year: Avinash Gorakshkar said that DIIs are not coming forward and buying heavily, which could be due to the fast-ending current fiscal year, as DIIs generally don't buy ahead of the end of the financial year. So, DIIs' behaviour of prolonged wait for the beginning of a new financial year is also a major reason for the continuous fall in the Indian stock market.

4] Sluggishness in the Indian economy: “After the recent geopolitical tension, crude oil prices have become highly volatile, and hence, it has become difficult for the companies to maintain their margins under control. This was reflected in the Q3 results 2025 season and is also a reason for the continuous fall in the Indian stock market,” said Mahesh M Ojha, AVP — Research at Hensex Securities.

5] FIIs' selling: “By the end of 13 February 2024 session, FIIs have sold out Indian stocks worth ₹25,000 crore whereas the DIIs have bought Indian shares worth ₹21,650 crore in the cash segment. This clearly indicates that DIIs are not in a mood of bottom fishing, which we usually witness post-Covid,” said Anshul Jain, Head of Research at Lakshmishree Investment and Securities.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.