Why Is the Market Down Today? Sensex Drops 700 Points, Nifty Falls Below 22,600
Mumbai, February 24, 2025 – Indian stock markets took a hit on Monday morning, with the BSE Sensex tumbling over 700 points to 74,620.30 and the NSE Nifty slipping below 22,600 to 22,591 by 9:55 AM IST. This sharp decline follows a tough opening, with the Sensex down 535 points at 74,788.32 and the Nifty dropping 160 points to 22,635.9. Investors are jittery, and here’s why the market is down today.
The downturn stems from heavy selling by foreign institutional investors (FIIs), who have offloaded Rs 36,977 crore worth of Indian stocks in February alone. Meanwhile, domestic investors have tried to cushion the fall, buying Rs 42,601 crore in shares. However, global pressures are overwhelming the market. Experts point to uncertainties over U.S. President Donald Trump’s tariff plans, which threaten to slap higher taxes on imports from countries like China, Canada, and Mexico. These moves could spark a trade war, hurting India’s export-heavy sectors like IT.
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In the U.S., stocks slumped last week as consumer confidence hit a 15-month low. Fears of “stagflation”—slow growth paired with rising prices—are growing, driven by Trump’s tariff threats and climbing inflation expectations. This has rattled global markets, with India feeling the heat. V K Vijayakumar, chief investment strategist at Geojit Financial Services, noted, “The market is facing headwinds from relentless FII selling and Trump tariff uncertainties. A surge in Chinese stocks is also pulling money away from India.”
On the Sensex, 28 of 30 stocks were in the red, with big names like Zomato, HCL Tech, PowerGrid, HDFC Bank, and IndusInd Bank falling up to 2%. Only Nestle India and Sun Pharma bucked the trend, gaining slightly. The Nifty IT index was the hardest hit, plunging over 2%, dragged down by giants like Infosys and TCS. Other sectors, except pharma and healthcare, also bled red.
Vijayakumar warned that volatility, tracked by the CBOE VIX, will likely persist. Hopes for a U.S. Federal Reserve rate cut are fading, which could keep FIIs selling. Yet, he sees a silver lining: “Largecap valuations are now fair, especially in financials, offering long-term buyers a chance.” For now, though, the market remains on edge, caught in a global storm.
