Share Market Bloodbath: India’s benchmark indices, Sensex and Nifty50, witnesses massive decline during the trade on Friday, February 28, 2025. The Sensex (index with top 30 firms) tumble 1,452.82 points to 73,159.60 during Friday’s trade. Meanwhile, Nifty50 (index with top 50 firms) was down to 22,105.15 points.
Within the first 45 minutes of trading, the overall market capitalization of listed companies on the Bombay Stock Exchange (BSE) plummeted massively. This resulted into the investors losing Rs 6 lakh crore in the first 45 minutes of trading.
The market is in decline trajectory because foreign portfolio investor (FPI) continued to pull off money. Additionally, muted earnings, and concerns over an economic slowdown also lead to the decline.
Share Market Bloodbath: What’s Behind The Drop?
- Slow economic growth due to government policies and potential tariffs.
- Rising inflation concerns, especially among US households.
- Fears of a London Cash Gold contract default, affecting gold prices.
- 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 he will impose tariffs on the friend nations also.
- 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 35,694 crore from Indian equities this month so far. Foreign investors have pulled out a total of Rs 1,13,721 crores from Indian share market.
