The Indian stock market has been declining for three consecutive days. On March 13, the BSE Sensex fell 1028.68 points. Let's find out what's behind this decline.

The stock market fell due to these reasons...

Share Market Crash Reasons:  The Indian stock market has been declining for three consecutive days. By 12:30 pm on March 13th, the BSE Sensex had fallen 1,028.68 points and was trading at 75,005.74. The NSE Nifty 50 was also declining.

The Nifty fell 361.05 points to trade at 23,278.10. Selling by foreign investors, rising crude oil prices, and global cues dampened the market sentiment. Let's explore the reasons behind this decline.

1. Rising crude oil prices cause market to fall

The surge in global crude oil prices has put pressure on the stock market. Reports of attacks on two oil tankers by Iran have raised fears of oil supply disruptions through the Strait of Hormuz. Consequently, the price of Brent crude in the international market has reached nearly $100 per barrel.

India is heavily dependent on imports to meet its energy needs. The situation in the Middle East has created uncertainty regarding crude oil prices. Consequently, market sentiment deteriorated today, with the stock market witnessing a decline.

2. Weak global signals

The Iran-Israel conflict is also impacting global markets. In other Asian markets, Japan's Nikkei 225, China's SSE Composite, and Hong Kong's Hang Seng Index are all seeing declines.

The US market also remained under pressure. Overall, negative global cues led to a decline in the Indian domestic market.  

3. Selling pressure by foreign investors increased

The Indian stock market's decline is being attributed to continued outflows by foreign investors. According to available exchange data, foreign institutional investors (FIIs) sold shares worth approximately ₹7,049.87 crore on Thursday.

Moreover, foreign investors have sold assets totaling over ₹39,000 crore since the beginning of March. The impact of this massive outflow is clearly visible in market movements.

4. Rupee weakens against the dollar

The rupee is clearly under pressure in the currency arena. On Friday, the Indian currency fell 12 paise to 92.37 against the dollar, marking one of its lowest levels ever. Market experts say the rupee is under pressure due to high crude oil prices, continued selling by foreign investors, and a strong dollar.

When the rupee weakens, imports become more expensive, which increases the risk of inflation, which directly impacts people's pockets.