The ongoing storm in the stock market is not taking the name of stopping. The decline of the market for 5 months is now close to breaking the new record. Due to the steady decline in the Indian stock market, the Nifty 50 index is moving towards the second longest monthly decline in its 30 -year history. The NSE's major index Nifty began in July 1990, and since then it has only happened twice when the Nifty 50 has fallen by five or more months in a row.
So far, the Nifty has seen a decline of 4% in February 2025, while this month only three business sessions remain. In the last five months, the Nifty has come down to 12.6% so far from the level of 25,811 in the end of September 2024.
During this decline, one in every five stock included in the Nifty has fallen by more than 28%. The major fall shares include Trent, Adani Enterprises, Asian Paints, BPCL, Hero MotoCorp, Bajaj Auto and Tata Motors, which has fallen by 31% to 33%.
Among the stocks holding high weightage in the index, Hindustan Unilever (HUL), ITC and Reliance Industries have broken up to 24%, 22% and 18% respectively. During this period, only three share -vipro, Bajaj Finance and Kotak Mahindra have been in the bank -profit, with an increase of 6% to 9%.
Technical analysts believe that the Nifty may soon fall from 22,500 to 22,400 levels. As long as the Nifty remains below 22,850, it will remain selling pressure. This means that as soon as the Nifty goes slightly up, investors will start selling shares. According to the LKP Securities Senior Technical Analyst Roopak Dey, the index has been falling since last year and is creating a lower top-loar bottom pattern on the daily chart, which is a sign of weakness in the market.
Apart from this, the trade war between the US and China and the boom in China's stock market has also increased the pressure on the Indian market. Foreign investors are withdrawing their money from India and investing in China, which has increased the pressure of selling in the Indian market. Since October 2024, India's market capitalization has decreased by $ 1 trillion, while China's $ 2 trillion has increased. The Hang Seng index has climbed 18.7% in just one month, while the Nifty has fallen by 1.55%.
Analysts believe that this trend of 'sell in India, buy in China' may continue, as the Chinese shares are still cheap. According to Dezerv co-founder Vaibhav Porwal, China announced an Economic Incentive Package in September 2024 to promote the economy, which has led to a boom in the stock markets there.
In such an environment, experts suggest that investors should carefully invest in good shares and avoid investing in small stocks whose annual profit is less than Rs 100 crore. Also, they should also consider selling losses with losses for tax benefits.
The 30 -share index Sensex of BSE was on its record high of 85,978.25 on 27 September last year. After that day, the stock market looked in such a look that the process of steady decline in the domestic stock market started and the Sensex and Nifty kept falling. In the last five months, the Nifty has fallen by 3,729.8 points i.e. 14.19 percent from its all -time high. At the same time, the Sensex has fallen by 11,376.13 points i.e. 13.23 percent from its record peak.
