Sensex Falls 1,300 Points in 3 Days: 5 Reasons Why the Stock Market (NSE and BSE) Is Crashing

The Indian stock market continued to fall for the third straight session on Friday, November 7. The Sensex has lost over 1,300 points (1.6%) in 3 days, while the Nifty 50 has slipped by more than 440 points (1.7%).

On Friday, the Sensex touched an intraday low of 82,670.95, and the Nifty 50 fell to 25,318.45. Midcap and smallcap indices also declined by almost 1%, showing a broad selloff.

Why Is the Stock Market (NSE and BSE) Falling?

1. Weak Global Signals

Global markets are under pressure due to high valuations in the US markets and concerns about the long US government shutdown.

Asian markets also crashed, with Japan’s Nikkei and Korea’s Kospi falling 2%. With fewer chances of another US Fed rate cut, global investors are turning cautious.

2. India Lacks Big Tech and Commodity Leaders

This year’s global market rally has been driven mostly by technology and commodity giants, areas where India does not have major global leaders.

3. Slower Nominal GDP Growth

India’s real GDP growth for Q1FY26 was strong at 7.8%, but nominal GDP, a key driver of corporate earnings, fell to 8.8% from 9.6% last year. This suggests underlying economic weakness.

The services sector also slowed in October after touching a 15-year high in August.

4. Heavy FII Selling

Foreign investors have been continuously selling Indian stocks due to a weak rupee, mixed earnings, and uncertainty over US interest rates. 

FIIs sold ₹6,214 crore worth of shares in November alone and have sold ₹1.4 lakh crore since July.

5. Uncertainty Over India–US Trade Deal

Despite positive comments from leaders of both countries, there is still no clarity on the India–US trade deal. This uncertainty continues to weigh on investor confidence.

Also Read, Dividends and Bonus Issue This Week (November 3-7, 2025)!

Conclusion

The recent market decline is driven by a combination of global weakness, economic concerns, FII outflows, and uncertainty over major trade agreements. Until foreign selling slows and macro signals improve, markets may remain volatile.

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