Today’s Sensex and Nifty Crash Reason: The Nifty 50 has dropped 810 points, or 3.41%, in the last eight trading days, while the Sensex has plummeted 2,644.6 points, or 3.36%.
Today’s Sensex and Nifty Crash Reason: Due to ongoing FII selling and a slowdown in corporate profits, benchmark indexes the Sensex and Nifty 50 continued their downward trend on Monday, February 17, for the ninth consecutive day.
In the early session, the Sensex fell 500 points, or more than 0.70 points, to reach an intraday low of 75,294.76. The index was down 410 points, or 0.53%, at 75,535 at the time this article was written, which was around 11 AM.
The Nifty 50 index opened down as well, dropping more than 200 points, or almost 1%, to a low of 22,725.45. At approximately 11 a.m., the Nifty 50 was trading at 22,807, down 124 points or 0.54%. The Nifty Bank index fell 350 points, or 0.70 percent, to 48,752 at about the same time.
The Nifty 50 has dropped 810 points, or 3.41%, over the last eight trading days, while the Sensex has plummeted 2,644.6 points, or 3.36%.
According to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the stock market is underperforming in 2025, with the Nifty 50 yielding negative returns of 3.4% compared to 4.9% for the S&P 500 and 11.7% for Europe. With a 9.6% decline in midcaps and a 22% decline in smallcaps, the overall market’s underperformance is severe.
The return to mean from pricey ground is evident. The sharp decline in corporate profits this year is the main reason for this subpar performance. Only 7% more was earned in the third quarter. Indeed, weak single-digit earnings growth does not excuse high numbers. The market’s response to the ongoing FII selling is primarily due to this. The market analyst that the problem was exacerbated by the dollar’s increase.
Only signs of a rebound in profits and a weakening dollar can reverse the deteriorating market trend. This could occur shortly. A return to growth and profitability is projected, and India’s macroeconomic prospects are steady. According to projections, Trump’s tariffs will cause inflation in the US, and the Fed will probably respond hawkishly, which will hurt the US dollar and markets. The market analyst, “We don’t know when, but this will happen.”
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