February’s last day proved to be a Red Fry-Day for the Share Market. In the fire of selling that occurred on Friday, investors lost more than ?9.57 lakh crore. Meanwhile, the Sensex has dropped by 17 percent and the Nifty by 18 percent from their All Time High. In this context, investors have faced a total loss of ?95 lakh crore in last five months.
On 27 Sep 24 the benchmark indices of the share market reached an All Time HIgh. The Sensex touched a peak of 85,978.25 points, and Nifty reached 26,277.35 points. Since then, there has been a continuous decline in the stock market. The Sensex has fallen by 17.45% from its all-time high, while Nifty has seen a decrease of 18.70%. Between September 27, 2024, and February 28, 2025, investors have lost ?95 lakh crore. On 27 Sep 24, the market cap of all companies listed in the stock market was ?4.79 Lakh Crore. On Friday, 28 Feb 25, it stood at ?3.84 Lakh Crore. Thus, there has been a reduction of ?95 Lakh Crore in market cap since the all-time high.
The last day of February, Friday, proved to be a Red Fry-Day for investors. Investors faced a loss of ?9.57 Lakh Crore in a single day. The Sensex closed down by 1.90 percent, losing 1,414.33 points to finish at 73,198.10 points. Meanwhile, the Nifty closed down by 1.86 percent, losing 420.35 points to end at 22,124.70 points.
Nifty has experienced a situation after 29 years where this index has closed at lower levels for five consecutive months compared to the previous month. This is the first time since 1996 that Nifty has closed in decline for five straight months. Additionally, Nifty has dropped by 4,152.65 points from its all-time high. On 28 Feb 25, Nifty has fallen below the crucial level of 22,500. Thus, it can be seen that Nifty is at its lowest level since May 14, 2024. Feb has been worst in past five years. Selling streak for past 5 months has been like
- Oct 2024 – ?29.63 Lakh Crore
- Nov 2024 – ?1.97 Lakh Crore
- Dec 2024 – ?4.73 Lakh Crore
- Jan 2024 – ?17.93 Lakh Crore
- Feb 2024 – ?44.83 Lakh Crore
The major reason for depletion of valuation has been FIIs. FIIs has ben on continous sselling steak for past 5 monhs. In Oct 24 alone, FIIs have sold shares worth ?1.14 Lakh Crores. Second biggest selling came in the month of Jan 25 wherein FIIs sold shares worth ?87 Lakh Crore in single month.
In terms of the biggest decline in the stock market so far, the Indian stock market is currently experiencing the fourth-largest decline in history. The biggest decline to date was a 52% drop in 2008. A 31.4% decline occurred in 1994-95. Meanwhile, there was a 26% decline in 1996. Currently, most major indexes in the market have fallen by 18 to 20%. This decline is greater than that during COVID-19 when the market saw a drop of around 13-14%. However, below 20% fall is counted as bear market. Above 20% fall is correction zone according to technical terms.
