Sensex Crashes 1,800 Points in 3 Days: Why the Indian Stock Market Is Falling?

Mumbai: The Indian stock market crash extended into its third consecutive session on Monday, wiping out investor wealth worth over ₹12 lakh crore in just three days. Mounting concerns over the delayed India-US trade deal, massive foreign capital outflows, and lackluster Q1 corporate earnings continue to drag sentiment downward.

The BSE Sensex plunged 572 points to close at 80,891.02, while the Nifty 50 slipped 156 points to end at 24,680.90. In three sessions, the Sensex has lost 1,836 points (2.2%), and the Nifty has declined 2.1%.

1. Trade Deal Delays Fuel the Indian Stock Market Crash

Investors are increasingly anxious over the uncertainty surrounding the India-US trade negotiations, especially with the August 1 deadline approaching fast. The major sticking point: Washington’s demands for greater access to India’s agriculture and GM product markets, which New Delhi continues to resist.

Recent trade successes between the US and Japan, and separately with the EU, have also placed pressure on Indian equities amid fears of tariff disadvantages.

2. FPI Selloff Accelerates the Indian Stock Market Crash

Foreign investors have been pulling money out of Indian markets rapidly. FPIs have offloaded ₹30,509 crore in July alone, with over ₹13,550 crore sold just in the last five sessions, dampening liquidity and worsening the fall.

3. Q1 Earnings Fail to Spark Optimism

Indian companies are delivering uninspiring first-quarter earnings, leading analysts to question the high valuations of many stocks. Without any strong corporate performances, market sentiment has turned negative.

4. No Fresh Triggers to Revive Bullish Sentiment

Despite macroeconomic stability, the absence of positive domestic or global catalysts has left markets rudderless.

Experts like Shankar Sharma have reiterated caution, pointing to an ageing bull market and forecasting flat returns over the next few years.

Adding to the gloom, both the Asian Development Bank (ADB) and India Ratings & Research (Ind-Ra) have lowered India’s FY26 GDP growth forecasts to 6.5% and 6.3%, respectively.

5. Technical Charts Point to More Downside

The Nifty has formed a bearish candle on weekly charts, with experts warning that a break below 24,750 could accelerate the decline to 24,500–24,300 levels.

According to Axis Securities, the index needs to break above 25,000 for any positive momentum to return. Until then, the market is expected to remain range-bound with a negative bias.

Disclaimer:
The information provided in this blog is for educational and informational purposes only. It does not constitute investment advice, a recommendation, or an offer to buy or sell any financial instruments. Stock market investments are subject to market risks. Past performance is not indicative of future results. Readers are advised to consult a qualified financial advisor before making any investment decisions. The author and publisher are not liable for any losses or damages arising from the use of this information.

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