- Sensex and Nifty 50 tumbled nearly 2%, wiping out ₹8.2 lakh crore in market value.
- Midcaps and smallcaps saw sharp losses, with Nifty Midcap 150 down 2.35%.
- Heavy FII outflows, US tariffs, and valuation concerns fueled the sell-off.
The Indian stock market witnessed a steep decline today, with benchmark indices closing in deep red. Global economic uncertainties, including the US Q4 GDP slowdown and escalating tariff tensions under Donald Trump, added to the negative sentiment.
Additionally, continued selling by foreign institutional investors (FIIs) has worsened the downturn. In February alone, FIIs dumped over ₹46,000 crore worth of equities, extending the five-month losing streak for Indian markets—the longest in 29 years.
Stock Market Bloodbath: Why Investors Are Panicking
The Indian stock market took a severe hit today, with Sensex plunging 1,414 points and Nifty 50 dropping 420 points. Midcaps and smallcaps were the worst affected, as investors rushed to book profits amid global uncertainties and valuation concerns. The rupee also declined further, reflecting weakness across Asian currencies.
One of the major factors behind the decline is Donald Trump’s aggressive tariff stance, with new 25% duties on Mexico and Canada and 10% additional tariffs on China. This has heightened fears of a trade war, leading to cautious investor sentiment worldwide.
Foreign Institutional Investors (FIIs) continued their heavy selling spree, pulling out ₹1.33 lakh crore in the first two months of 2025. This persistent outflow signals a lack of confidence in emerging markets, particularly in Indian equities, which remain overvalued despite recent corrections.
Experts caution that the market correction may not be over yet, especially for midcap stocks. While some buying opportunities may emerge, investors are advised to tread carefully and focus on fundamentally strong stocks amid ongoing volatility.
With the Sensex and Nifty reeling under pressure, short-term volatility is expected to persist. Traders will closely watch India’s GDP data and global macroeconomic trends for further cues. A cautious approach with a focus on quality stocks is recommended.
“The stock market is a device for transferring money from the impatient to the patient.” — Warren Buffett
