Investors Panic as Indian Stock Market Faces Unprecedented Downturn

Stock Market Crash: ₹92 Lakh Crore Wiped Out in Worst Slump in 30 Years

Indian stock markets have witnessed a sharp decline over the past five months, marking the worst crash in three decades.
Nifty has plummeted 12.65% since October 2024—the steepest drop in 30 years.
Sensex has fallen 11.54%, while BSE Midcap and Smallcap indices have declined 20% and 22.78%, respectively.
Investors have suffered a massive market cap erosion of ₹92 lakh crore.
₹92 Lakh Crore Wiped Out in Five Months
Since September 26, 2024, the total market capitalization of Sensex-listed companies has shrunk by ₹25 lakh crore. The combined valuation of BSE-listed firms has declined from ₹474 lakh crore on September 30, 2024, to ₹384 lakh crore on February 28, 2025, leading to an overall loss of ₹92 lakh crore.

What’s Driving the Indian Stock Market Crash?
1. Inflationary Pressures
Rising inflation continues to squeeze corporate profits, impacting investor sentiment.

2. Slowing Economic Growth
A slowdown in India’s GDP growth has raised concerns about the country’s financial outlook.

3. Donald Trump’s Tariff Threats
The former US President’s proposed tariffs have sparked fears of trade disruptions, affecting global markets.

4. Rupee Depreciation
The falling value of the Indian rupee against the US dollar has worsened market conditions, making imports more expensive.

What Lies Ahead for Investors?
Experts warn that market volatility may continue as global and domestic economic uncertainties persist. The Reserve Bank of India (RBI) and government policies will play a crucial role in restoring market confidence and stabilizing financial conditions in the coming months.