This week, the Sensex and Nifty witnessed a 2.5% decline, resulting in a ₹24 lakh crore reduction in investor wealth. Small-cap, mid-cap, pharma, and PSU sectors were significantly impacted.
Stock Market Wrap: This week proved bearish for Indian stock markets. All trading sessions from February 10th to 14th concluded in the red. Both the Nifty and Sensex experienced an approximate 2.5% decline, marking the largest weekly fall so far in 2025.
Significant Decline in Sensex and Nifty
Over the past eight trading days, the BSE Sensex fell by 2,644 points (3.36%), and the Nifty by 810 points (3.41%). The BSE Sensex closed at 75,939 on Friday, down from 77,311. The Nifty ended the week at 22,929, a 452-point decrease.
Pressure on Broader Market: Decline in Small-cap and Mid-cap Indices
The broader market, which performed exceptionally well last year, has seen a significant downturn this year. Small-cap and mid-cap indices fell by 3.6% and 2.4%, respectively. The small-cap index is down 21.6%, and the mid-cap index is down 18.4%.
3% Decline in Pharma Sector
On the sectoral front, the pharma sector experienced a 3% decline, attributed to the impact of the US trade war. Additionally, the Nifty PSU Bank sector fell by 2%, while the Nifty Oil & Gas sector saw a 1.5% decrease.
Significant Reduction in Investor Wealth
This week witnessed a ₹24 lakh crore decline in total investor wealth. The market capitalization of BSE-listed companies was ₹42,47,80,48 crore on February 7th, decreasing to ₹40,01,92,47 crore on February 14th.
Major Reasons for Market Decline
Impact of US Tariff War: Trump's tariff announcements increased pressure on the Indian market, potentially causing significant harm to India.
Continuous Selling by Foreign Investors: Foreign investors consistently withdrew funds from the Indian stock market, negatively impacting market sentiment.
Soft Quarterly Results: Disappointing December quarter results from several Indian companies heightened investor concerns.
Strategies to Adopt Amidst Market Correction
Experts suggest that while volatility is present, it also presents opportunities. Investors should focus on b, long-term growth stocks rather than short-term fluctuations.
Is a Market Recovery Possible Next Week?
According to experts at Religare Broking, a market recovery is anticipated, but the direction will depend on the performance of the banking and IT sectors in the coming days. Investors need to reassess their strategies and focus on trade management.
