Indian stocks have faced their worst performance in 29 years, erasing $1 trillion in wealth. Market analysts believe this downturn may continue. The country’s benchmark indices, the Nifty 50 and Sensex, have significantly underperformed compared to other global markets since September.
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A contract note is a legal document issued by brokers after every transaction, serving as proof of all your trades. It ensures… pic.twitter.com/TlK37DduKz— BSE India (@BSEIndia) March 5, 2025
In the past five months, the Nifty 50 has emerged as one of the worst-performing global markets. According to market experts, India remains a “sell-on-rise” market. This indicates that investors are likely to continue selling their assets during brief upward movements in stock prices.
Nifty Bank, Nifty Realty, Nifty Pharma & Nifty PSU Bank hit 1 week high
Here's how the markets panned out today!👇#Nifty50 #stockmarketsindia pic.twitter.com/FtWNFjwqcf
— ET NOW (@ETNOWlive) March 6, 2025
Derivatives market positioning further signals potential risks ahead. Recent roll-over actions in India’s derivatives markets have shown that participants are preparing for continued volatility. Financial stocks have shown some resilience, but technology stocks were particularly hard hit in February.
Stock Market Today, March 6: Sensex gains 609 pts to reclaim 74k, Nifty above 22500; RIL up 3% | ET NOW Closing Bellhttps://t.co/XmWPxUZlxi
— ET NOW (@ETNOWlive) March 6, 2025
Since the end of September, both the Nifty and Sensex have failed to keep pace with international market peers.
Indian market faces prolonged slump
The Nifty is on track for its longest monthly losing streak since 1996.
The outflow of investments, both from foreign and domestic institutional investors, has been a major factor in the market’s poor performance. Biju Samuel, a prominent market analyst at Elara, predicts that the Nifty 50 could see a significant downturn. He says it could possibly drop another 2,500 points.
Despite this anticipated decline, Samuel remains optimistic about the bull market in the United States. He expects a recovery following last week’s slump on Wall Street. “The market dynamics in India are facing substantial headwinds, which could lead to a notable correction in the Nifty 50 index,” Samuel explained.
However, he reassured that the larger U.S. market appears resilient and poised for a rebound. This forecast comes amid a turbulent period for global markets. Investors are closely watching economic indicators and corporate earnings for signs of stability.
Further insights and market analysis will continue to unfold as financial experts and stakeholders assess the ongoing economic developments.
