The Indian stock market has seen a significant correction, with Sensex and Nifty both dropping by 14% from their record highs over the past five months. Analysts are predicting further downside for these key indices in the near future. This decline comes in the wake of weak global cues, lackluster Q3 earnings, concerns over President Donald Trump’s tariff threats, and continuous selling by foreign institutional investors (FIIs).
Market Performance and Impact on Investors
In the current session, Sensex has slipped by 4.72% while Nifty has lost 4.62% in 2025. On Monday, Sensex dropped 856 points to 74,454, and Nifty saw a decline of 242 points, closing at 22,553. This downturn has had a significant impact on investor wealth, with a loss of Rs 4.03 lakh crore, bringing the total market capitalization of BSE-listed firms to Rs 402 lakh crore as of February 21.
Expert Insights and Technical Analysis
Industry experts like Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, and Rupak De, Senior Technical Analyst at LKP Securities, are bearish on the current market situation. Shetti highlighted the formation of a negative candle on the daily chart, indicating a downside breakout at 22,700 levels for Nifty. De pointed out that Nifty has broken down from a bearish flag and pole pattern, suggesting a continuing correction with support levels at 22,450 and a potential further drop to 22,200.
Sectoral Performance and Market Trends
Stocks like HCL Technologies, Infosys, Zomato, TCS, Tata Steel, and Bharti Airtel have been among the biggest losers on Sensex, falling by up to 3.32%. Conversely, M&M, ITC, Kotak Bank, Maruti, Nestle India, Axis Bank, and HUL were the only gainers on the index, rising by as much as 1.58%. Across the board, all 13 sectoral indices on BSE were trading in the red, with IT stocks leading the losses.
Market Experts’ Views and Outlook
Vinod Nair, Head of Research at Geojit Financial Services, expressed concerns about global headwinds affecting the domestic market and causing volatility. He emphasized that increased government spending, lower interest rates, and tax reductions could provide some relief to sectors such as FMCG, consumer discretionary, and banking. Prashanth Tapse, Senior VP (Research) at Mehta Equities, highlighted the impact of US tariff concerns on developing countries like India and the continued exit of FIIs from the market.
Market Breadth and Investor Sentiment
Market breadth was predominantly negative, with 2,810 stocks ending in the red out of 4,200 traded on BSE. The midcap index fell by 316 points to 40,057, and the small-cap stock index dropped by 601 points to 45,254, indicating broader market weakness. Foreign institutional investors sold equities worth Rs 3,449 crore on a net basis, while domestic investors bought shares amounting to Rs 2,884 crore, according to provisional NSE data.
In the previous session, Sensex had fallen by 425 points to 75,311, and Nifty closed 117 points lower at 22,796 on Friday. The market continues to face uncertainties and challenges, with investors advised to exercise caution and seek professional financial advice before making any investment decisions.
The volatility and downward trend in the stock market reflect the broader economic landscape and global factors influencing investor sentiment. As the market navigates through these challenging times, it is essential for investors to stay informed, diversified, and prepared for potential fluctuations in the coming weeks and months.
