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Social media is flooded with memes of Union Finance Minister Smt. Nirmala Sitharaman. First, have a look at some of the tweets on X criticizing the finance minister.
Why are people criticizing her?
When asked why the market is slowing down in India, she replied that India’s stock markets have become highly liquid (meaning there is plenty of cash and active trading volume). She said that the ease of trading is the biggest reason for the market downfall. This means that people can withdraw money from the market easily.
Indian Finance Minister Nirmala Sitharaman stated during an interview with CNBC that accessible market liquidity allows investors to exit equities easily, contributing to recent benchmark index compression. She maintained that India’s macroeconomic fundamentals remain sound, despite significant foreign outflows and ongoing market headwinds.
The market is down approximately 12% but FM Sitharaman heavily emphasized that this market drop is technical rather than structural. She said that India’s economic fundamentals remain solid and “fine”.
The Indian Market is slow
The Indian stock market is currently weak and under selling pressure, based on the latest available market data. As of October 20, 2026, the latest completed trading session showed a significant decline in the Sensex and Nifty. The Indian stock market witnessed a decline on October 19, 2026, with both benchmark indices, the Sensex and Nifty 50, closing lower. The Nifty 50 fell by 1.11% to close at 22,888.95, while the BSE Sensex declined by 1.17% to settle at 73,852.90.
The main reasons for the weakness are:
- High crude oil prices: Oil above $100 per barrel creates concerns about India’s import bill, inflation and corporate costs.
- Foreign investor selling: Foreign institutional investors have been withdrawing money from Indian equities.
- Weakness in private banks and IT stocks: Selling in heavyweight stocks has put pressure on the major indices.
- Global uncertainty: Geopolitical tensions and concerns about global earnings are affecting investor sentiment
Is this a temporary correction or a longer slowdown?
It is too early to conclude that the market will remain weak for a long time. The current picture suggests a correction with several risks that investors need to watch.
| Factor | What it means |
|---|---|
| Crude oil remains expensive | Negative for India’s economy and many companies |
| Continued FII selling | Can keep share prices under pressure |
| Strong corporate earnings | Could support a recovery in individual stocks |
| Lower valuations after a correction | May create opportunities for long-term investors |
