Indian Equity Benchmarks Plunge Over 12% from Record Highs The Indian stock market has experienced a significant correction, with major indices falling sharply from their recent peaks. The NIFTY50 index has dropped 12% from the record highs it reached in December of the previous year, while the SENSEX has declined by as much as 13%. This sharp decline has led to a substantial loss of investor wealth, with over ₹44.69 lakh crore in assets wiped out during the ongoing market downturn. The selling pressure has been particularly intense among mid- and small-cap stocks. The NIFTY Midcap 100 and NIFTY Smallcap 100 indices have both fallen 20% from their record highs in December 2024. Analysts attribute this correction to a combination of factors, including deteriorating investor sentiment that began to weaken around October 2024. Rising valuation concerns and an increasingly uncertain global environment have contributed to the subdued market mood. A key trigger for the shift in investor sentiment was the imposition of tariffs by Donald Trump on goods exported to the United States from its trading partners, including India. Additionally, geopolitical tensions between India and Pakistan in May of the previous year added to the uncertainty for investors. Persistent outflows by foreign institutional investors (FIIs) have also played a role in the weak market sentiment. Data from the National Securities Depository Limited shows that FIIs have offloaded shares worth ₹2.57 lakh crore since 2024. This exodus was driven by a weakening rupee and a shift of global capital toward safer assets such as US bonds.#donald_trump #sensex #nifty50 #nifty_midcap_100 #nifty_smallcap_100
