Finance

Why are the Indian stock markets crashing?   Why are the Indian stock markets crashing - Let’s dive deeper into the factors behind the Indian stock market crash as of February 28, 2025, expanding on the key drivers and adding granularity to the situation based on the latest insights and dynamics. 1. Foreign Institutional Investor (FII) Outflows: A Deeper Look The scale of FII selling in 2025 has been staggering—over ₹1.33 lakh crore withdrawn year-to-date, with ₹46,000 crore dumped in February alone (as of February 27). This isn’t just a knee-jerk reaction but a calculated shift in global investment strategy. Here’s why: China’s Pull: China’s markets have rebounded sharply since late 2024, fueled by stimulus measures like interest rate cuts and infrastructure spending. The Hang Seng Index, for example, has outperformed the Nifty by a wide margin, drawing FIIs to cheaper valuations (China’s PE ratios hover around 10-12x versus India’s 22-24x for the Nifty 50…