Stock market crash: These are the 7 reasons due to which the earthquake occurred in the stock market, Sensex fell by 700 points, 7 lakh crores were lost.

News Topical, Digital Desk : The stock market witnessed a sharp decline on Friday, with the Sensex falling nearly 700 points and the Nifty slipping below 25,100. Investor confidence has been shaken by FII selling for 13 consecutive sessions, weak quarterly results, rising crude oil prices, and geopolitical tensions. Furthermore, the rupee's fall to a record low and heavy selling in banking and Adani Group stocks have worsened the situation. In this worsening situation, the market cap of BSE-listed companies has fallen from Rs 4,58,42,842.61 crore to Rs 4,51,53,722.46 crore, a loss of Rs 6.90 lakh crore during this period.

On Friday, the market closed with another heavy decline. The Sensex fell 770 points to close at 81,538. Meanwhile, the Nifty fell 241 points to close at 25,049. The Midcap index fell 1,046 points to 57,146, and the Nifty Bank index fell 727 points to close at 58,473. Nearly 40 Nifty stocks were in the red, and all sub-sectoral indices closed with losses.

Amid the decline, some stocks also shone.
Amid the intense pressure of the whole week, some midcap stocks performed well. Hindustan Zinc, Bajaj Consumer, Ashok Leyland and Bandhan Bank - these stocks registered gains of 4–5%. Hind Zinc gained more than 4% as silver prices reached a record high. Know the 7 major reasons which broke the back of the market. Friday's trading session was very heavy for the Indian markets. A kind of pressure remained throughout the day and finally the Sensex fell by 700 points, while Nifty went below 25,100. This huge weakness in the market was not due to any one reason, but due to the simultaneous impact of many factors.
 

(1) Persistent FII selling dampened sentimentSelling pressure from foreign investors is steadily increasing. On Thursday alone, FIIs sold a massive ₹2,549.80 crore. This was the 13th consecutive session in January when FIIs have net sold. Dr. V.K. Vijaykumar of Geojit Investments clearly states that until corporate earnings in India pick up strong momentum, it is difficult to change the FII stance. FIIs are increasing short positions with every rise, which is keeping the market in check. FII presence is less in the broader market, so there may be some movement there based on Q3 results.

(2) Weak quarterly results added to the pressure Weak results from major companies like ICICI Bank and HCL Technologies further eroded investor confidence. When index heavyweights fall, the market is often significantly impacted—this is the case this time as well.
(3) Rise in crude oil prices
Brent crude rose 0.8% to $64.57 per barrel. For an importing country like India, higher crude prices directly increase trade deficit and inflation pressures, weakening equity markets.
(4) Geopolitical tensions ease, but long-term concerns remain
Although global markets saw some relief on Thursday after Trump's statement—he softened his proposed tariffs on Europe and ruled out the use of force against Greenland—Indian markets remained down about 1.5% for the week. Tensions in European-US relations, global policy uncertainty, and trade issues have increased market volatility.

(5) Adani Group's huge decline
News of the SEC seeking permission to send email summons to Gautam Adani and Sagar Adani in connection with an alleged fraud and $265 million bribery scheme sparked a sharp sell-off in Adani Group shares, putting all of the group's shares under pressure.

(6) Banking stocks take a beating
Bank Nifty fell 1 percent. PNB and Yes Bank were the top losers. Banking stocks continued to be under pressure due to broad-based selling in the domestic market.

(7) Rupee at record low
The rupee fell 41 paise on Friday to a record low of 91.99 per dollar. Continuous FII outflows, geopolitical tensions and strengthening of the dollar weakened the rupee. RBI's intervention has provided some relief, but the trend is still negative. Lack of clear indication on US-India trade agreement may also put pressure on the rupee.

Technical picture is also weak
According to Ruchit Jain of Motilal Oswal, Nifty is forming a 'lower top-lower bottom' pattern in the short term, which indicates a decline. 25,400 has now become an immediate resistance. Unless the index crosses above this, the decline may continue.

Read More: Stock market crash: These are the 7 reasons due to which the earthquake occurred in the stock market, Sensex fell by 700 points, 7 lakh crores were lost.