The Month of February Proves Disastrous for Investors
The month of February has been exceptionally harsh for investors worldwide, and the Indian stock market has not been spared from this turmoil. As the month draws to a close, there seems to be no sign of relief. On February 28, as soon as the market opened, investors faced a massive loss of over Rs 4 lakh crore, highlighting the severity of the ongoing stock market crash.
Markets in Freefall: Nifty and Sensex See Sharp Declines
No sector has been able to escape the downturn, as all Nifty indices are trading in the red. The auto and IT sectors, in particular, are under immense pressure, with their respective indices plummeting by over 2 percent each. The Sensex also remains heavily impacted, with only one stock managing to record a marginal gain.
The overall market capitalization of companies listed on the Bombay Stock Exchange (BSE) has witnessed a steep decline of Rs 4.27 lakh crore. As of now, the BSE Sensex has dropped by 988.32 points (1.13 percent), settling at 73,624.59. Similarly, the Nifty 50 has plunged by 302.50 points (1.34 percent), standing at 22,231.95.
Investors Suffer a Massive Loss of Rs 4.27 Lakh Crore
On February 27, 2025, the total market capitalization of all BSE-listed companies stood at Rs 3,93,10,210 crore. However, by the morning of February 28, 2025, this figure had fallen to Rs 3,88,82,696 crore, resulting in a staggering loss of Rs 4.27 lakh crore for investors in a single trading session.
Asian Markets Also in Decline
The negative trend is not confined to India alone, as major Asian markets are also experiencing sharp declines. The GIFT NIFTY has dropped by 183 points, while Japan’s Nikkei index has plunged by approximately 3.63 percent, settling around 36,936. Singapore’s Strait Times has also seen a decline of 0.73 percent, and Hong Kong’s Hang Seng index is down by 2.46 percent at 23,134.68. Additionally, South Korea’s Kospi has tumbled by 3.13 percent, and China’s Shanghai Composite has slipped by 0.89 percent, standing at 3,358.28.
A 28-Year-Old Record Broken
Nifty’s prolonged decline has broken a 28-year-old record, marking an unprecedented slump. Since 1996, the Indian stock market has not witnessed a continuous decline for five consecutive months. This marks only the second instance in Nifty’s history where a downturn has persisted for five months or more since 1990.
The last such prolonged decline was recorded between September 1994 and April 1995, when the index dropped by a staggering 31.4 percent over eight months. Similarly, in 1996, Nifty fell by 26 percent between July and November. This recent five-month slump underscores the magnitude of the current financial crisis, leaving investors anxious about what lies ahead.
Outlook: What’s Next for the Market?
With global and domestic markets showing no signs of stability, investors are bracing for further volatility. Experts suggest keeping a close eye on macroeconomic factors and global trends, as market movements in the coming weeks will be crucial in determining whether a recovery is on the horizon or if further losses are inevitable.
