Why the Stock Market is Falling? Anushka Rathod Explains

The stock market is experiencing a sharp decline, and finance influencer Anushka Rathod talks about three most critical reasons for this decline.

1. The US Economy

US President Donald Trump generated market volatility with his unexpected actions. Yesterday, he had announced an additional 10% import tariff from China, which generated tension between the two countries. Meanwhile, the U.S. central bank had planned to lower interest rates, but now they have paused the cuts. This has negatively affected stock markets worldwide, including India.

2. Poor Performance of Companies in India

Many companies in India have reported lower-than-expected earnings. In fact:

28% of Nifty50 companies, 34% of Nifty Midcap 100 companies, and 50% of Nifty Smallcap 100 companies missed their revenue targets. Since the stock market was already at high levels, missing these estimates has led to panic selling, causing stock prices to fall further.

3. FII Selling (Foreign Investors Withdrawing Money)

Global uncertainties, such as conflicts in the Middle East and the ongoing Russia-Ukraine war, have made foreign investors cautious. They are reducing their risk exposure by withdrawing their money from the Indian stock market. In 2025 alone, Foreign Institutional Investors (FIIs) have pulled out ₹1 lakh crore, adding to the market decline.

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What Should Retail Investors Do?

Anushka Rathod promises to share advice in part two of her explanation. So, stay tuned and follow her for insights on how to navigate this stock market crash!