The Indian stock market witnessed extreme volatility in 2025. Investors saw a sudden drop in Nifty and Sensex, leaving many worried about their portfolios. But what caused the crash, and what lies ahead?
Causes of the Crash
- Global Factors: Rising US bond yields, Trump tariffs, and geopolitical tensions.
- Domestic Triggers: RBI’s monetary tightening and weaker corporate earnings.
- Investor Sentiment: Heavy FII (Foreign Institutional Investor) outflows.