Sensex Crashes Over 1,300 Points in 3 Sessions — What’s Weighing on Indian Markets?

Sensex Slumps 1,300 Points in 3 Days — Key Factors Behind the Market Meltdown

Written by: Supriya Kadu

Edited by: Pinky Deshmukh

Last Updated: November 07, 2025

Summary: Sensex and Nifty fall because of global weakness, FII outflows, and negative domestic cues.

The BSE Sensex has dropped more than 1,300 points (about 1.6%) in the last three trading days, while the Nifty 50 has dropped more than 440 points. At one point, the Nifty even dropped to near 25,318.

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What’s driving the drop?

Here are some of the key reasons investors are hitting the sell button:

Global risk-off mood: Markets in Asia and globally have struggled lately. For example, Japan’s Nikkei and Korea’s Kospi were down ~2% in recent moves — and that kind of weakness tends to pull India along.

Foreign investor flows: When global sentiment sours, foreign institutional investors (FIIs) often pull money out of emerging markets like India, which takes pressure off the upside.

Valuation fatigue and profit-taking: After a great run, many equities were trading at high valuations. Some investors are simply booking profits.

Domestic pockets of weakness: While large caps moved, mid-caps and small caps have also come under pressure, showing the breadth of the sell-off.

What to watch next

If global markets stabilise, India could see a recovery in flows and sentiment — but if risks escalate (such as trade tensions, poor earnings, or policy surprises), the downward trend could deepen.

Watching support levels will matter: Nifty breached 25,300, and the Sensex breached 82,670, indicating caution.

Sector-wise: Defensive stocks may hold up better, while rate-sensitive ones (financials, real estate) could remain under pressure.

In short, the market isn’t in a panic mode yet, but it is definitely in a risk-off frame. For now, it feels like traders are stepping back and waiting for the next clear trigger before jumping back in.