Indian stock market falls: Four key reasons behind the Nifty slide

India's stock market continued its decline on Tuesday, with the Nifty 50 index falling below 23,000 points on Monday, a level not seen in nearly six months, amid sustained selling pressure. The decline is driven by four key factors: rising crude oil prices above $106 per barrel due to supply disruptions, a strengthening US dollar as Treasury yields hit a 19-year high, a weakening rupee, and continued selling by foreign institutional investors who have withdrawn $25.6 billion from Indian equities in 2026. India's foreign exchange reserves also recorded their largest weekly drop in nearly two years, while the RBI sold dollars to support the rupee. Market experts attribute the two-year stagnation to an overvalued market following a rapid three-fold surge between 2021 and 2024.