Sensex Falls Below 75,000 Amid Global Growth Concerns
On Monday, February 24, 2025, Indian equity markets witnessed a substantial downturn, with the BSE Sensex falling below the 75,000 mark and the Nifty 50 index experiencing a significant drop. This decline is primarily attributed to escalating concerns over global economic growth, particularly in the United States, which have unsettled investors.
Sensex and Nifty Plunge Amid Global Growth Worries
At approximately 9:34 AM IST, the BSE Sensex was trading at 74,769.40, a decrease of 541.66 points or 0.72%. Simultaneously, the Nifty 50 index declined by 158.40 points or 0.69%, reflecting the broader market’s negative sentiment. This downturn has been influenced by recent data indicating a slowdown in U.S. business activity in February, raising concerns about the potential impact on global markets.
Sectoral Impact and Investor Sentiment
The market decline was widespread, with twelve of the thirteen major sectors experiencing losses. Financial and information technology stocks were among the hardest hit, with the financial sector index dropping by 1.4% and the IT sector index by 2.2%. Analysts attribute this to foreign portfolio investors withdrawing funds from these sectors due to apprehensions about slowing growth in the U.S., which could adversely affect export-driven industries.
In contrast, the pharmaceutical sector emerged as the sole gainer, recovering from previous losses linked to fears of potential U.S. tariffs. Notably, shares of Healthcare Global Enterprises rose by 3.5% following the announcement of a $400 million stake acquisition plan by private equity firm KKR.
Midcap and smallcap indices also faced declines, each falling by 1.2%, indicating a broad-based sell-off in the market.
The persistent decline in the Indian markets throughout February, with losses recorded in 15 out of 17 trading sessions, underscores the prevailing cautious sentiment among investors. Factors such as consistent foreign outflows, uncertainties surrounding U.S. trade policies, and concerns over domestic economic growth have collectively contributed to this downward trend.
Market experts advise investors to remain vigilant and consider diversifying their portfolios to mitigate potential risks associated with global economic uncertainties.
In summary, the Indian stock markets are currently navigating a challenging environment influenced by global economic concerns and sector-specific issues. Stakeholders are closely monitoring developments to make informed investment decisions in this volatile landscape.
