The stock market continues to crash, showing heavy losses on the last day of February. The market has been weak for the past five months, and investors are seeing their portfolios turn red due to continuous declines.
Market Opens with a Big Drop
On the last day of February, both the Sensex and Nifty opened in the red, breaking their key levels. The Nifty dropped below 22,300. At the time of writing, the Bombay Stock Exchange (BSE) Sensex had fallen by over 700 points, while the National Stock Exchange (NSE) Nifty dropped more than 200 points.
Sensex opened at 73,925.98, down by 686.45 points, and Nifty started at 22,325.20, down by 219.85 points. Around 539 stocks showed gains, while 1,702 stocks saw losses. As trading continued, Sensex fell over 900 points, bringing the total market capitalization of BSE-listed companies down by ₹5.8 lakh crore to ₹387.3 lakh crore.
Investors Lose Billions
February has been a tough month for investors worldwide, and even on the last day, the market is not showing any signs of recovery. As soon as the market opened, investors lost more than ₹5.8 lakh crore. No Nifty index was in the green during Friday’s trading session. The total market capitalization of BSE-listed companies fell from ₹393.1 lakh crore on February 27, 2025, to ₹387.3 lakh crore on February 28, 2025, meaning that investors lost over ₹6 lakh crore.
What Is Causing the Market Crash?
Several factors are contributing to the market crash, including:
- US Tariff Announcement: US President Donald Trump recently announced new tariffs. Starting March 4, the US will impose a 25% tariff on imports from Mexico and Canada and a 10% additional tariff on Chinese goods. This decision has shaken global markets, affecting India as well.
- Foreign Institutional Investors (FII) Selling: FIIs have been continuously selling their holdings in the Indian stock market, leading to further declines.
- India’s Q3 GDP Data: Investors are uncertain about upcoming GDP data, creating market instability.
Will the Market Fall Further?
Market experts believe that Indian stocks are still overvalued compared to the economy. Some stocks have already dropped by more than 50% in the last four months, and analysts predict further declines. The market could remain weak due to high stock prices.
Rupee Depreciation
The Indian rupee also weakened on Friday, falling 19 paise to 87.37 against the US dollar. The strengthening US dollar and weak stock markets have negatively impacted investor sentiment.
Conclusion
The Indian stock market continues to experience heavy losses due to global economic policies, foreign investor selling, and weak GDP data. Experts believe that more declines are possible, and investors should remain cautious in the coming days.
