Bloodbath at Dalal Street continues as Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) witnesses massive drop since September 2024. BSE’s Sensex loses more than 10,000 points in just 5 months, whereas NSE’s Nifty loses nearly 4,000 points during this period.
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The BSE Sensex Stock Market Index reached an all-time high of almost 86,000 in September 2024, whereas Nifty hit the all-time high of almost 26,300. Meanwhile, Sensex closed at 75,311.06 points, whereas Nifty settled at 22,795.90 points on Friday, February 21.
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Bloodbath At Dalal Street: Here Are The Reasons Behind The Drop
- Slow economic growth due to government policies and tariffs.
- Rising inflation concerns, especially among US households.
- Fears of a London Cash Gold contract default, affecting gold prices.
- The US Federal Reserve’s hawkish stance, hinting at no rate cuts.
- Investors moving money from India to China, seeking higher returns.
What’s Impacting The Market Now?
- The Indian rupee is continuously witnessing decline. The INR is hitting fresh lows on almost every day.
- US President Donald Trump said that the new 25% tariffs would be imposed on all steel and aluminum imports, in addition to existing duties. This led to the fall of several stocks.
- The recent Delhi election results, which saw the BJP secure a decisive victory, were anticipated to bring stability to market sentiment.
- Union Budget, presented on February 1 and RBI’s MPC decision to cut the repo rate by 25 basis points (bps) to 6.25% failed to impress the equity markets.
Continuous selling by the foreign investors in Indian equities. Foreign investors have pulled out Rs 23,710 crore from Indian equities this month so far.
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