Why did the Indian stock market crash in August 2025?
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In August 2025, Indian equity markets slid significantly, marking their sixth consecutive week of losses—the longest such streak in five years. Key drivers behind this downturn included: Surprise U.S. tariffs: Former President Trump imposed a 50% tariff on Indian exports, raising trade uncertainty aRead more
In August 2025, Indian equity markets slid significantly, marking their sixth consecutive week of losses—the longest such streak in five years. Key drivers behind this downturn included:
Surprise U.S. tariffs: Former President Trump imposed a 50% tariff on Indian exports, raising trade uncertainty and damaging investor confidence .
Foreign investor outflows (FPI): Large capital withdrawals intensified the selling pressure .
Weak corporate earnings: The April–June 2025 quarter revealed sluggish earnings trends—marking the fifth straight quarter of single-digit growth, particularly dragging down banks and IT sectors .
Overstretched valuations: High price-to-earnings metrics added to vulnerability amid an uncertain macro backdrop .
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