Indian Stock Market Declines: Sensex Falls Over 4,000 Points in February 2025

[{"selector":"#anim-cbf821dd-cc76-4df9-be5f-bf591f732043","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-e691aeda-5556-4d12-b7a8-add65294346f","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Indian Stock Market Declines: Sensex Falls Over 4,000 Points in February 2025

[{"selector":"#anim-5127b909-3bd8-4137-ae26-37a0ea6a7868","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-72009be4-0c7a-48e8-87d3-8051ce923a45","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] In February 2025, the Sensex experienced a significant drop of over 4,000 points, leading to a ₹40 lakh crore reduction in market capitalization.

[{"selector":"#anim-8da4c7f9-e3fd-4f56-aa6c-9c5d0c6d07fb","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-1b465baa-94ba-4161-a58a-e84cd029dd94","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] The Nifty 50 index faced its longest losing streak since 1996, with five consecutive months of declines.

[{"selector":"#anim-8dcd1c1f-c516-49fe-8f7e-e811293e369a","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-32aa90ef-69b6-43c9-9f28-356ba2a90a0f","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Nithin Kamath, Founder and CEO of Zerodha, commented on the market correction, noting a substantial decline of over 30% in both the number of traders and trading volumes across brokerage firms.

[{"selector":"#anim-1a9d19d5-c803-4694-ada7-71ae4075d85d","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-4c1974cf-d836-42aa-93b8-ba0bfffb783f","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Kamath also highlighted that if this trend continues, the government's revenue from Securities Transaction Tax (STT) could fall to ₹40,000 crore, significantly below the projected ₹80,000 crore for FY 2025-26.

[{"selector":"#anim-f226df9e-2009-4a3f-bd60-5244e756e10c","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-efc90668-9a53-4a14-841f-d86f9570e41f","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Market advisory firm Merisis believes the recent market downturn could be the final phase of decline, possibly leading to a strong rebound within 4 to 6 weeks.