On the last day of February, there is a big decline in the stock market. Both Sensex and Nifty opened on red mark. The market started with a huge decline and the Nifty-Sensex broke its crucial levels. The Nifty has gone below 22300. By the time the news was written, the Sensex of Bombay Stock Exchange (BSE) had fallen by 700 points and the National Stock Exchange (NSE) Nifty had fallen over 200 points.
The Sensex fell 686.45 points to 73,925.98 and the Nifty fell 219.85 points to 22,325.20. During this period, there was a rise in about 539 shares and 1702 shares declined. By the time the news is written, the Sensex is seeing a decline of more than 900 points. Due to this decline, the market cap of BSE listed companies declined by Rs 5.8 lakh crore to Rs 387.3 lakh crore.
Millions of crores of investors drowned
February has made the blood tears to investors worldwide, while the market does not seem to give relief to investors on the last day of the month. Today, as soon as the market opened, more than 5.8 lakh crore rupees of investors in the Indian stock market were submerged. Not only this, no index of Nifty was seen in the green mark in Friday’s trading session. Overall, the market cap of companies listed in BSE declined by Rs 5.8 lakh crore. Earlier on 27 February 2025, the total market cap of all shares listed on BSE was Rs 3,93,10,210.53 crore. Today, when the market opened on 28 February 2025, it fell to Rs 3.87 lakh crore. This means that the capital of more than Rs 6 lakh crore has been submerged by investors.
Who is taking the market down?
There are many reasons behind the devastation in the market, the biggest reason is US President Donald Trump’s new tariff declaration, frequent selling from foreign investors and India’s third quarter GDP figures.
How much more will it fall?
Amid this decline in the market, market experts have described Indian markets and shares as overwell. Experts believe that Indian markets are currently much more valuable than the economy and shares are quite expensive. Meanwhile, the most surprising thing is that due to the ongoing decline for the last 4 months, many stocks have fallen by more than 50 percent. Market experts have feared further decline in the market. He says that the market may fall further as the stocks are now expensive.
The reason for the decline in the market
US President Donald Trump’s decision is behind the market fall. In fact, Trump announced on 27 February that 25% tariff on goods coming from Mexico and Canada and additional 10% tariff on goods coming from China would be applicable from March 4. His decision created a stir in the global market, which is also seen on the Indian market.
3 major reasons for market fall
US tariff decision: US President Donald Trump announced new tariffs on imports from Mexico and Canada. This increased the pressure in the global markets and also affected the Indian market. FII selling: Foreign institutional investors (FIIs) are continuously selling in Indian markets, which is intensifying the decline. India’s third quarter (Q3) GDP data: New data related to the country’s economy is going to be released which are affecting the market. This has created uncertainty among investors.
Devaluation of rupee
On Friday, the rupee fell 19 paise to 87.37 against the US dollar in early trade. The strengthening of American currency and negative attitude in domestic stock markets affected the notion of investors.