Stock market crash immediately: BSE Sensex tanks over 800 factors; Nifty50 below 22,600 – top reasons bears are growling

Kaumi GazetteBusiness24 February, 20258.2K Views

Revival of FII funding in India will occur when financial development and company earnings revive, says V Ok Vijayakumar of Geojit Financial Services. (AI picture)

Stock market crash immediately: BSE Sensex and Nifty50, the Indian fairness benchmark indices, plunged in commerce on Monday. While BSE Sensex tanked over 800 factors, Nifty50 went below 22,600. At 10:28 AM, BSE Sensex was buying and selling at 74,543.15, down 768 factors or 1.02%. Nifty50 was at 22,565.90, down 230 factors or 1.01%.
Indian fairness benchmarks declined for the fifth consecutive session on Monday, reflecting world market weak spot after US equities dropped on account of worries about declining client demand and potential tariff impositions. All sectors skilled downward strain.
The complete market worth of BSE-listed companies decreased by Rs 5.07 lakh crore to Rs 397.13 lakh crore.
American client confidence fell to its lowest level in 15 months throughout February, with inflation expectations rising amidst worries concerning former President Donald Trump’s proposed tariff insurance policies, in accordance with latest statistics.
Most Asian markets confirmed damaging efficiency, following the downward pattern seen on Wall Street on Friday on account of development-associated considerations.
Zomato, HCL Tech, TCS, Tech Mahindra, HDFC Bank, and IndusInd Bank started buying and selling decrease, while Sun Pharma, Maruti, M&M, Bajaj Finserv, and Nestle India confirmed constructive motion in early buying and selling.
In sectoral efficiency, the Nifty IT index fell by 1.8%, with LTTS, Persistent Systems, and Coforge main the decline. Nifty Financial Services, Media, Metal, PSU Bank, Realty, and Consumer Durables indices all opened greater than 1% decrease.
Also Read | Top inventory suggestions for the week beginning February 24, 2025

Why inventory market is falling immediately

1) Consumer Confidence Declines in US
Global markets retreated following an surprising discount in US providers exercise, influenced by tariff considerations and rising prices. Reports indicated the White House was urging Mexico to implement tariffs on Chinese items.
American client confidence decreased considerably in February, reaching its lowest level in 15 months as inflation outlook elevated. The University of Michigan’s Consumer Sentiment Index decreased to 64.7 from 71.7 in January, below analysts’ forecasts. Citizens voiced worries about how President Donald Trump’s tariff insurance policies may have an effect on their spending capability.
2) Economic Growth and Inflation Concerns
The US faces challenges with declining development alongside rising inflation, creating market uncertainty. This state of affairs impacts export-centered industries, together with Indian IT, while making creating markets much less fascinating for worldwide traders, who may choose safe investments like US {dollars} and treasury bonds.
The Nifty IT index fell 1.8% immediately, with LTTS, Persistent Systems, and Coforge exhibiting losses.
3) Markets Await Inflation Statistics
Investors stay cautious earlier than Friday’s launch of the Federal Reserve’s important core inflation indicator. Analysts anticipate the determine to lower to 2.6% from 2.8%, although tariff-associated worries may diminish its significance.
Further complexity arises as 9 Fed officers are on account of converse this week, probably sustaining a prudent strategy concerning rate of interest reductions.
4) Ongoing Foreign Investment Outflow
Foreign portfolio traders have withdrawn Rs 1,01,737 crore web from Indian equities in 2025 thus far, as per NSDL figures.
According to Dr. V Ok Vijayakumar, Chief Investment Strategist, Geojit Financial Services, “FII selling continues unabated in the Indian stock market. After Trump’s victory in US presidential elections, the US market has been attracting huge capital inflows from the rest of the world. But recently, China has emerged as a major destination of portfolio flows. The Chinese president’s new initiatives with their leading businessmen have kindled hopes of a growth recovery in China. Since Chinese stocks continue to be cheap, this ‘Sell India, Buy China’ trade may continue. But this trade has happened in the past and experience is that it will fizzle out soon since there are structural problems constraining Chinese economic revival. Revival of FII investment in India will happen when economic growth and corporate earnings revive. Indications of that are likely to happen in two to three months.”

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