The Indian stock market saw a huge decline on Tuesday, 13 May 2025. The BSE Sensex broke over 900 points to 81,450 levels, while NSE Nifty was trading below 24,750 to around 24,670. This decline has worried the investors, as the market recorded the biggest one -day fast of four years in the last season. Let us know what are the main reasons for this decline in the market.
Effect of global signals
Mixed stance and uncertainty in global markets put pressure on the Indian market. The US markets saw a slight decline on Monday, where the S&P 500 decreased by 0.5% and Nasdech by 1%. In addition, strict policy on the interest rates of the US Federal Reserve and Donald Trump’s trade policies, especially tariffs against China, increased vigilance among global investors. In Asian markets too, Japan’s Nikkei was trading down 2% and Korea’s Kospie below 1.5%, which affected the Indian market.
Indo-Pak stress shadow
Recently, reports of tension between India and Pakistan reduced the market on Monday. However, on Tuesday, investors started profits, as the peace situation on the border is not yet completely clear. Analysts say geopolitical uncertainty remains a major cause of market instability.
Sector-specific pressure
IT and financial shares played a major role in the market fall. Major shares like Infosys, TCS, Kotak Mahindra Bank and HDFC Bank fell to 2-4%. The IT sector is under pressure for a possible decrease in American demand, as there are increasing fears of economic recession. In addition, concerns about increase in interest rates on financial shares and debt quality affected. The Nifty IT index was trading down 1.8% and the Nifty Bank Index below 1.5%.
Selling of foreign investors
Foreign institutional investors (FIIs) are constantly selling in Indian markets. On Monday, FII sold a net selling of Rs 2,500 crore. Investors are withdrawing capital from Indian equity in search of safe investment options globally, causing additional pressure on the market.
Technical analysis and future stance
According to technical analysts, the Nifty has broken significant support at the level of 24,500. If it slips below 24,300, there is a possibility of further decline. On the other hand, the level of 24,900 can now work as resistance. Experts are advising investors to adopt a long -term approach and invest in quality large shares.
