In the last five months, the Sensex has dropped by 12 percent, while the Nifty has fallen by 13 percent. Since the beginning of this year, both indices have declined by 4.3 percent.
The midcap index has fallen by 20 percent, and the smallcap index has seen a sharper decline of 23 percent.
In contrast, global markets have shown better performance. China’s Shanghai index has risen by 0.23 percent, Hong Kong’s Hang Seng by 17 percent, and South Korea’s Kospi by 10 percent this year.
Additionally, Europe’s major stock markets—DAX, CAC, and FTSE—have recorded a growth of 13 percent.
Meanwhile, in the first two months of the year, the American market indices have also shown positive growth: the Dow Jones increased by 2.44 percent, the S&P 500 by 2.46 percent, and the NASDAQ by 1.26 percent.
Monday’s Market Situation: Another Day of Decline
On Monday, key stock indices continued their downward trend for the fifth consecutive session. This was primarily due to foreign institutional investors pulling out capital amid concerns over US market weakness and possible retaliatory tariffs.
The BSE Sensex plunged by more than 850 points, slipping below the critical 75,000 mark. It ended the day at 74,454.41, losing 856.65 points.
During the session, it had dropped as much as 923.62 points. The Nifty also closed in the red at 22,553.35, down by 242.55 points.
Sensex Drops Over 1,500 Points in 5 Days
Over the last five trading sessions, the Sensex has declined by 1,542.45 points (2 percent), while the Nifty has fallen by 406.15 points (1.76 percent).
This drop has brought the Sensex’s total market valuation below four trillion dollars, its lowest level in 14 months. The BSE Smallcap index declined by 1.31 percent, and the BSE Midcap index fell by 0.78 percent.
Reasons Behind the Stock Market Decline
Escalation of Tariff War: Growing fears of an intensifying global tariff war.
Withdrawal of Foreign Institutional Investors (FIIs): Rapid exit of foreign investors from Indian markets.
China’s Market Attractiveness: China’s improving market is drawing investors away from India.
Economic Concerns: Worries about GDP slowdown and rising inflation.
US Interest Rate Policy: Changing stance of the US regarding interest rate cuts.
Global uncertainties continue to put pressure on domestic markets, leading to volatility and uncertainty for retail investors.
The potential imposition of higher retaliatory tariffs by the US could impact developing economies, including India. At the same time, FIIs continue to withdraw from Indian markets, adding to the pressure.