Explainer: Why Indian markets are in a freefall
Nifty 50 and Sensex just clocked six straight weeks in the red—their worst run since early pandemic days.
Both indices have dropped about 5% since late June, thanks to rising US tariffs, weak Q1 earnings from major companies, and foreign investors pulling out big money.
US tariffs on Indian exports
US tariffs on Indian exports have doubled to 50%, putting pressure on sectors like seafood (with a projected ₹24,000 crore hit), textiles, chemicals, and more.
At the same time, foreign investors have pulled out over ₹15,950 crore in August alone, making markets even shakier for everyone—including younger investors or anyone with mutual funds.
Technical signals are flashing red
Technical signals are flashing red—Nifty is trading below key averages and could drop further if selling continues.
Domestic institutions are buying some stocks to soften the blow, but trade tensions and weak profits mean a quick bounce-back isn't likely just yet.