The Indian stock market started on a weak note and continued to slide throughout the day, ending with significant losses.
Market Performance on Monday
The Indian stock market closed in the red on Monday, February 24. The downturn was primarily driven by mixed global sentiments, concerns over Donald Trump’s tariffs, the emergence of a new coronavirus strain in China, and escalating tensions between Russia and Ukraine.
- BSE Sensex dropped by 847 points (1.1% down).
- NSE Nifty ended 243 points lower (1.1% down).
Sectoral Performance
While FMCG and auto sectors showed resilience, most other sectors saw losses. Media, metal, and telecom stocks were particularly under pressure.
- Top Gainers: M&M, Eicher Motors, Hero Motocorp.
- Top Losers: Wipro, TCS, ONGC.
Market Indices and Other Key Data
- The GIFT Nifty closed at 22,599, down by 192 points.
- BSE Mid Cap and BSE Small Cap indices closed lower by 0.8% and 1.3%, respectively.
Currency and Commodity Markets
- The rupee is trading at 86.72 against the US Dollar.
- Gold prices saw a slight rise, trading 0.3% higher at Rs 86,230 per 10 grams.
- Silver prices dropped 0.3%, now trading at Rs 95,877 per kg.
Four Key Reasons Behind the Market Decline
1. Continued Foreign Institutional Investor (FII) Selling
Foreign investors have been pulling out significant amounts from Indian equity markets. In February alone, they withdrew over Rs 237.1 billion, pushing the total outflows for 2025 past Rs 1 trillion.
2. Slowing US Economic Growth
US consumer sentiment dropped sharply in February, reaching a 15-month low. With inflation expectations on the rise, concerns over President Trump’s proposed tariffs weighing on household purchasing power are adding to market anxiety.
3. Geopolitical Tensions
The ongoing Russia-Ukraine conflict escalated on Sunday with Russia launching its largest drone strike on Ukraine since the war began. These geopolitical tensions are contributing to investor uncertainty.
4. External Market Pressures
The Indian stock market is also facing external pressures, including a weakening rupee, reduced US dollar reserves, poor third-quarter earnings reports, and a widening trade deficit. These factors are further impacting market sentiment.
Bonus Insight: Shipbuilding Sector for 2025
Analysts are eyeing India’s shipbuilding sector for growth in 2025. Despite the current share being less than 1% of the global market, new policies are set to boost the industry and increase India’s market share significantly.
Leave a Reply