Unraveling the Mystery: Why India’s Stock Market Has Plummeted for 6 Consecutive Sessions

Feb 12, 2025 07:15 PM IST

India’s Stock Market Faces Six-Day Decline

The Indian stock market has struggled recently, experiencing a drop for six consecutive days. This downturn is one of the longest this year. The Sensex index fell by over 2,400 points, while the Nifty index dropped nearly 700 points. This decline represents about a 3% loss for each index.

In terms of individual stocks, Mahindra and Mahindra, ITC, Reliance Industries, and Infosys were among those that saw significant losses. On the bright side, companies like Bajaj Finserv and Tata Steel managed to post gains.

What’s Causing the Decline?

1. US Tariff Policies: One major factor is the tariffs imposed by the US, particularly under former President Trump’s administration. These tariffs have raised concerns globally, affecting many markets, including India.
2. Trade Tariffs on Aluminium and Steel: The US’s tariffs on imported aluminium and steel have unsettled the global market, leading to a ripple effect on share prices.
3. Foreign Investment Outflows: Foreign Institutional Investors (FIIs) have been selling off equities. Just recently, they sold around ₹4,486.41 crore in one day, contributing to market instability.
4. Disappointing Corporate Earnings: Recent financial results for several companies have not met expectations, causing further concern among investors.
5. US Inflation Data: Investors are anxious about upcoming retail inflation data in the US, which could impact global markets.
6. High Stock Valuations: Many traders believe that Indian stocks are currently overvalued after a strong market performance last year, heightening fears of a necessary correction.