Stock Market Crash Today: Sensex Falls 550 Points, Nifty Below 24,900

The stock market crash continues with FIIs dumping ₹3,551 crore, deepening the Sensex and Nifty decline

Khushi Sikarwar | Published: September 25, 2025 16:25 IST, Updated: September 25, 2025 16:25 IST
4 min read
Stock Market Crash Today: Sensex Falls 550 Points, Nifty Below 24,900

The Indian stock market has been on a downward ride for the past five trading sessions, and the losses don’t seem to be stopping anytime soon. On September 25, 2025, the Nifty 50 index fell below 24,900 points, and the Sensex index fell nearly 550 points, adding to nervousness among investors.

The continuous decline has already erased billions of rupees in investor wealth, undermining confidence and worrying many about how long the markets will take to recover.

Foreign Investors Selling in Bulk

One of the biggest reasons behind this market crash is large-scale selling by foreign institutional investors (FIIs). Just in a single session, FIIs sold Indian shares worth around ₹3,551 crore. With global uncertainty rising, many foreign investors are pulling money out of emerging markets like India, which is dragging the market down further.

IT Sector Under Pressure After U.S. Visa Shock

Adding fuel to the fire, the U.S. government has proposed a hefty $100,000 fee for new H-1B visa applications. Along with this, changes in visa selection rules are expected to favor higher-paid workers.

Since Indian IT companies depend heavily on the U.S. for business, this decision has spooked investors. The impact was seen immediately, with the Nifty IT index falling about 3%, raising fears that margins and profits of major IT companies may take a big hit in the coming months.

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Global Uncertainty and Rupee Weakness

Global markets are also struggling due to fears of higher U.S. interest rates and tighter monetary policies. The strengthening U.S. dollar and weakening Indian rupee are adding to the troubles. In sectors that earn in dollars but incur rupee costs, this creates pressure that weighs further on Indian markets.

Overpriced Stocks and Profit Taking

As per experts, stock prices had grown far too high over the last several months, as prices had significantly risen well in excess of business underlying performance. This is seen as a profit-taking phase occurring, where an investor sells an expensive stock, likely in IT and large-cap companies, to lock in a profit.

Slowing Earnings and Economy

The negative sentiment is further driven by weaker corporate earnings; several companies have announced results that were below investor expectations. Further to those concerns, signs of weaker domestic demand and the slowing of industrial growth are developing concerns about how strong India’s economy is likely to be in the near future.

SIP Inflows Cushion the Fall

Even with all this bad news, there’s one silver lining. Mutual fund SIPs (systematic investment plans) are still getting steady money from retail investors. These consistent inflows are helping cushion the fall to some extent, though they can’t fully offset the heavy selling pressure from foreign investors.

FAQs

  1. Why is the stock market falling continuously?

Because of foreign investors pulling out money, U.S. visa fee hikes affecting IT firms, weak global trends, profit booking, and slowing earnings in Indian companies.

  1. How big are the losses so far?

In just five days, billions of rupees in investor wealth have been wiped out as both Sensex and Nifty dropped sharply.

  1. Which sector is suffering the most?

The IT sector is seeing the most pain, with stocks down about 3% after the U.S. visa fee announcement.

  1. Is there any positive factor left in the market?

Yes, retail investors are still putting money into SIPs, which is providing some cushion against the fall, though it’s not enough to stop the slide.

  1. When will the market recover?

Analysts say the market could stabilize once corporate earnings improve, foreign investors slow down their selling, and global uncertainties like U.S. interest rates ease. Until then, volatility is likely to continue.