The Indian stock market in 2025 experienced significant losses primarily due to a combination of domestic and global factors.

Key reasons for the downturn include:Large foreign portfolio investor (FPI) outflows, with FPIs withdrawing around $13-15 billion (₹1.1-1.2 lakh crore) from India, creating heavy selling pressure and loss of market confidence.

Sharp depreciation of the Indian rupee past ₹88 per USD, which impacted investor sentiment negatively.

US trade tariff threats, notably under the Trump administration, imposing high tariffs on Indian exports, intensifying fears of a prolonged global trade war.

Weak corporate earnings and mismatch between high stock valuations and earnings growth, creating concerns of overvaluation.

Macro challenges including inflation, slower GDP growth (around 5.4-6.1%), and domestic policy uncertainties.

Global economic slowdown fears, US monetary policy uncertainty, and geopolitical tensions further compounded investor caution.

Repeated bouts of selling pressure between mid-August and September 2025, with major indices like Sensex and Nifty dropping below key technical support levels.Impact sectors included IT, metals, financial services, and export-oriented industries.

Overall, the crash wiped out several lakh crore rupees in market value and caused a sharp erosion in investor wealth and confidence in 2025, driven by a mix of foreign capital flight, tariff shocks, currency weakness, and economic growth concerns ����.