Explainer: Why Indian stock markets are facing heat
This week, both Sensex and Nifty had their sharpest fall in over a year, down nearly 3%.
The Sensex lost 2,368 points to close at 78,918, while the Nifty dropped by 728 points to finish at 24,450.
Investors saw about ₹8.75 lakh crore vanish from the market in just a few days.
Foreign investors pull out, rupee hits record low
If you're tracking your investments or just curious about the economy, this is a big deal.
A weaker rupee (hitting record lows around 92.1-92.3 per US dollar) means imports get pricier (especially for oil) and that can push up costs everywhere.
Plus, foreign investors pulled out over ₹21,800 crore recently, adding more pressure.
Geopolitical tensions and domestic growth concerns
Tensions in West Asia escalated after strikes reportedly killed senior Iranian officials, sparking retaliation across Gulf states.
Oil prices shot up by 17% in just four days to $82 a barrel, bad news for sectors like airlines and autos.
On top of that, India's industrial growth slowed down too, making things even tougher for markets right now.