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The Indian stock markets suffered a sharp decline on Monday, February 24, 2025, as weak global cues, persistent foreign institutional investor (FII) selling, and geopolitical tensions weighed on investor sentiment.
- BSE Sensex opened at 74,893.45 and fell 923.62 points to touch an intra-day low of 74,387.44 before closing at 74,454.41, down 856.65 points (1.14%).
- Nifty 50 dropped 242.55 points (1.06%), settling at 22,553.35, after hitting an intra-day low of 22,548.35.
Sectoral Performance and Key Stock Movements
While FMCG and pharma stocks showed resilience, the IT sector took the biggest hit, falling 2.25%.
Top Gainers – Sensex & Nifty
Mahindra & Mahindra
Nestlé India
ITC
Kotak Mahindra Bank
Hindustan Unilever
Top Losers – Sensex & Nifty
Zomato (-2.04%)
HCLTech (-1.52%)
Infosys
Bharti Airtel
TCS
Why Did the Market Crash?
1. FII Selling Pressure
Foreign investors continued heavy sell-offs, withdrawing ₹23,710 crore in February alone. This adds to ₹78,027 crore outflows in January, pushing total FII withdrawals in 2025 over ₹1.01 trillion.
Expert Take: “The market is struggling with relentless FII selling and uncertainty around Trump tariffs,” said Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
2. Weak Global Cues
- Wall Street suffered a sharp fall on Friday, with the Dow Jones (-1.69%), S&P 500 (-1.71%), and Nasdaq (-2.2%) posting losses amid slowing US GDP growth and inflation concerns.
- US consumer sentiment hit a 15-month low, dropping to 64.7, while the PMI Output Index fell to 50.4, signaling economic sluggishness.
3. Geopolitical Tensions
- Russia launched its largest drone attack on Ukraine over the weekend, escalating global uncertainties and causing investors to pull out of risky assets.
4. Rupee Depreciation & External Headwinds
- A weakening rupee, widening trade deficit, and weak Q3 corporate earnings have further dampened market sentiment.
February 25, 2025 – Market Outlook
Stock Market Recovery
After the sharp fall, Indian indices rebounded on February 25, as financial and auto stocks led the recovery.
- Sensex rose 250+ points, surpassing 74,600.
- Nifty 50 climbed above 22,550, showing a modest recovery despite ongoing global concerns.
Sensex Opening (Feb 25, 2025 – 12:41 IST)
- Opened at 74,632.3 (+0.24%)
- Boosted by auto and banking stocks
- Weighed down by metal sector losses and global trade fears
Analyst Outlook
Short-term volatility will persist due to global tensions and FII outflows.
Sectors like FMCG, pharma, and technology remain attractive for long-term investors.
Traders should stay cautious as market uncertainty continues.
With global concerns looming and FIIs maintaining their selling spree, Indian markets may remain volatile. Investors should focus on defensive sectors like FMCG and pharma while keeping an eye on macroeconomic trends.
