KKN Gurugram Desk | The Indian stock market saw another day of decline on February 17, 2025, marking the ninth consecutive session of losses. This has raised concerns among investors as the market continues to experience volatility.

???? Sensex dropped over 600 points, reaching 75,348.64
???? Nifty slipped 196 points, trading at 22,733.10

This is the longest losing streak since 2011, making investors cautious about market conditions.

Why Is the Stock Market Falling?

Market analysts attribute the downturn to several factors, including foreign investor sell-offs, a weakening Indian rupee, and trade policy changes in the US.

Top 5 Reasons Behind the Stock Market Crash

1. Foreign Institutional Investors (FII) Sell-Off

✔ Over the past few days, FIIs have been withdrawing funds from the Indian market.
✔ A strong US dollar is prompting foreign investors to shift their capital to American markets.

2. Weakening Indian Rupee

✔ The Indian rupee has been weakening against the US dollar, making the market less attractive for investors.

3. US Trade Policy and Tariffs

✔ US President Donald Trump’s decision to impose new tariffs on Indian exports has negatively impacted market sentiment.

4. Disappointing Q3 Earnings Reports

✔ Market analysts note that Nifty and BSE500 companies’ net profits have been below expectations.
✔ Weak quarterly results have led to a decline in investor confidence.

5. High Market Valuations

✔ Several stocks are overvalued, leading to increased selling pressure.
✔ Analysts suggest that high valuations without strong growth cannot be justified, causing market instability.

Which Sectors Are Affected the Most?

???? Major Declines in Sectors:
✔ Nifty Realty fell by 2.5%
✔ Nifty Auto dropped 1.8%
✔ Nifty Media declined by over 2%

???? Sectors That Performed Well:
✔ Nifty Pharma and Nifty FMCG showed minor gains
✔ Investors continue to prefer Pharma stocks as they are less affected by market volatility

Impact on Small and Mid-Cap Stocks

???? Nifty Smallcap 100 and Nifty Midcap 100 dropped over 2%
???? Market Volatility Index (VIX) surged by 7%

The decline in small and mid-cap stocks indicates a shift in investor sentiment, as they prefer safer investment options during uncertain times.

Total Market Cap Falls Below ₹400 Lakh Crore

???? The total market capitalization of the Indian stock market fell below ₹400 lakh crore, the lowest in eight months (since June 2024).

Market Experts’ Views: What Should Investors Do Next?

Will the Market Fall Further?

According to Religare Broking’s research head, Ajit Mishra:
✔ Nifty has support at 22,800, but current trends indicate further downside risks.
✔ Investors should exercise caution and use stop-loss strategies while trading.

Is This a Buying Opportunity for Long-Term Investors?

✔ Some analysts believe that this correction presents an opportunity to invest in fundamentally strong companies.
✔ However, short-term traders should remain cautious due to high volatility.

Which Stocks and Sectors Should Investors Focus On?

✔ Pharma and FMCG sectors remain safe bets.
✔ IT and Banking stocks could see a reversal in the coming weeks.

Can the Market Recover Soon?

???? Two Key Factors Will Determine Market Recovery:
✔ US dollar weakness and improvements in global markets.
✔ Strong economic growth signals from India.

According to Geojit Financial Services’ Chief Investment Strategist, V.K. Vijayakumar:

????️ “There is panic in the market right now, but it won’t last long. Once earnings growth improves, markets will bounce back.”

???? Five major reasons for the stock market crash – FII sell-off, strong US dollar, US trade tariffs, weak earnings reports, and high valuations.
???? Nifty and Sensex have seen a nine-day losing streak, raising concerns among investors.
???? However, some sectors (Pharma, FMCG) are showing resilience.
???? Nifty may find support at 22,800, but further declines cannot be ruled out.
???? Long-term investors may see this as a buying opportunity, but short-term traders should be cautious.

???? Will the market recover soon, or will this decline continue?

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