Why is Indian Stock Market Falling ? Seven Reasons

In my view Major Reasons which can be linked to current Market fall from Dec-2024 to Feb-2025 may be as below (i) US Federal Reserve Policy: Concerns over aggressive interest rate hikes by the US Federal Reserve to combat inflation have led to capital outflows from emerging markets like India. (ii) Global Recession Fears: Fears of a global economic slowdown, particularly in the US and Europe. (iii) Domestic Inflation: High inflation in India, driven by elevated food and fuel prices. (iv) Foreign Institutional Investor (FII) Outflows : FIIs have been net sellers in Indian equities over the past few months due to global risk-off sentiment. (v) Geopolitical Tensions : Ongoing geopolitical issues, such as the Russia-Ukraine war and tensions between the US and China (vi) Currency Depreciation : The Indian rupee has weakened significantly against the US dollar, (vii) Technical Factors : Market corrections often follow extended periods of bullish sentiment.