PrashantNews
Last September was the month of the bull run in the Indian stock market. Within a short span of 20-30 days in September, the stock market hit all time high of 85978.
Some investors with their customary gung-ho zeal claimed that the market would touch one lakh also. And then came the downturn. It started crashing days after days. Initially the crash was slow during the Diwali time. But 2025 didn’t auger well.
The crash became more rapid. The Indian stock market losing Rs 10 lakh crore or more became a familiar trend. In short, there were more downturns than bull-runs.
But the fact remains that the benchmark Senex didn’t lose much of its fat as compared to a large number of midcaps and smallcaps which tanked more rapidly, some losing even more than 50 percent of the value during the period. Every time, the market crashed, experts blamed the global uncertainty or some internal economic blues. After reaching around 86000 points, the Sensex is hovering around 76000 now.
An analysis shows some heavyweight stocks like Infosys, Kotak Bank, Maruti Suzuki and M&M have not lost much ground. But the midcaps and smallcaps are bearing the brunt of the downturn.
In the today’s (Feb 11, 2025) crash also when the market has tanked more than 1000 points, there were some shares like Adani stocks which stood their ground.
How long the downturn will last, nobody knows. But there are reasons for the recent crash in the market. First the valuations were stretched. There was a story of slowdown in the consumption. And finally when Donald Trump became the President, his economic threats started unnerving the market. With this, dollar reached a new high. “When all these negative things were happening, our market especially midcaps and smallcaps took a nosedive,” said Ashish Barthwal of Sushil Financial Services. “We are hopeful that the market will improve in coming days and buying will start,” he said. When will the market start going up? “We can’t say anything now”, said another analyst.
When the market is in bearish mode, even strong domestic cues fail to lift sentiments. Did anybody talk about the BJP’s victory in the Delhi assembly elections?