The Indian stock market experienced a significant downturn on Friday, with the Sensex plunging 856.66 points or 1.14 percent to 74,454.41 and the Nifty dropping 243.40 points or 1.07 percent to 22,552.50. All 13 major sectoral indices were in the red, with financial and IT stocks facing the sharpest losses, falling 1.4% and 2.2%, respectively. The Nifty Pharma index was the only gainer, edging up nearly 0.5 percent.
Several key factors contributed to the market decline.
Market Makers | Is one better off buying Zomato/Swiggy or D-Mart/V-Mart for a 3-5-year horizon?
Milind Karmarkar of Dalal & Broacha Portfolio Manager details the key trends of quick commerce and large grocery stores and the outlook for the stocks
Watch the full interview -… pic.twitter.com/o3TBesWAxg
— ET NOW (@ETNOWlive) February 24, 2025
Uncertainty over US President Donald Trump’s threat to impose reciprocal tariffs on India and China has heightened market volatility, as investors brace for potential trade disruptions. Trump announced this policy shift during the swearing-in ceremony of Commerce Secretary Howard Lutnick, indicating that the US would soon enforce tariffs equivalent to those charged by these countries.
Nifty 50 Crash: Index on verge of breaking 28-year-old record – Will Bulls roar to maul bears?https://t.co/ccLXlrcoQ7
— ET NOW (@ETNOWlive) February 24, 2025
Foreign institutional investors (FIIs) have been consistently offloading equities, with sales amounting to Rs 3,449.15 crore on Friday. The total outflows for the month have exceeded Rs 23,710 crore, adding to market pressure.
The market is facing headwinds from relentless FII selling and global uncertainties over Trump tariffs,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
After today, the S&P 500 is down an annualized 86.1% on Friday. Only 1937 was worse.
We've been talking a lot how weakness on Friday has been the play in 2025. News heavy markets = sell ahead of the weekend.
I'll take it as the good news, as it has to improve. Right? pic.twitter.com/rBy2QWPl4i
— Ryan Detrick, CMT (@RyanDetrick) February 21, 2025
Indian market declines amid global fears
Concerns about slowing growth in the US have also contributed to the global market turmoil. Recent economic data signaled a decline in business activity and weakening consumer sentiment, with business activity hitting a 17-month low.
Additionally, Walmart’s weaker-than-expected earnings guidance has sparked fears of reduced consumer demand. Anand James, Chief Market Strategist at Geojit Financial Services, noted that four consecutive sessions of decline have pushed Nifty to its lowest level since the downtrend began on September 27. “We are now looking at a range of 22,580-22,300.
A reversal could happen if Nifty avoids slipping further or swings back above 22,790. However, a firm break above 22,950 would confirm strength in the market,” he said. The Indian stock market continues to face significant challenges due to global trade uncertainties, relentless FII selling, and concerns over the US economic outlook.
Investors remain cautious as they navigate this turbulent period.
Photo by; Charlie Costello on Unsplash
