The Indian stock market has been shaken sharply on Thursday, May 22, 2025. The Sensex dropped over 800 points. Nifty 50 fell below 24,550. Investors are worried and looking for answers. What are the reasons behind this crash? Here’s what’s causing the sudden slide.
Global Sell-Off Sets the Mood
US markets fell hard last night. The Dow, S&P 500, and Nasdaq all closed lower. This weakness spread across Asia. Indian stocks opened in the red and kept falling. Global sentiment is clearly negative.
US Bond Yields and Debt Fears
US bond yields have shot up. A weak 20-year bond auction has made things worse. Investors are now worried about the rising US debt and deficit. Higher yields make US assets more attractive. As a result, foreign investors are pulling money out of India.
Rising Tensions in The Middle East
Tensions are rising between Iran and Israel. Reports suggest Israel may be planning military action. This is making investors nervous. Any conflict in the Middle East could push oil prices higher and hurt global growth.
High Valuations, Mixed Earnings
Indian markets have rallied a lot in recent months. Stock prices, especially in large-caps and mid-caps, look expensive now. This makes the market more fragile when global cues turn negative.
Q4 earnings of companies have not impressed investors and analysts. Even IT and banking sectors posted weak results. Demand has decreased, and there are no strong domestic triggers to lift the market right now.
Technical and Sectoral Weakness
Technical charts have turned weak. Banking, IT, Auto, and Financial stocks are leading the fall. Key support levels for the Nifty are being tested.
