The stock market has seen a significant decline over the past month and a half. This week, for the second time, Sensex and Nifty dropped by more than 1% on Friday. On the last trading day of the week, the Sensex fell over 750 points, nearing 79,300, while the Nifty traded below 24,150 points. This downturn is attributed to foreign investors selling Indian equities and weak earnings in the second quarter of the financial year 2025.
Investors Lose ₹8 Lakh Crore
The disappointing second-quarter results from private sector lender IndusInd Bank and government-owned power sector company National Thermal Power Corporation Limited (NTPC) led to this decline. As a result, the market capitalization of all companies listed on the Bombay Stock Exchange dropped by ₹7.7 lakh crore, bringing it down to ₹436.1 lakh crore.
Weak Second-Quarter Results
In the second quarter of the financial year 2025, several blue-chip and other companies reported disappointing results, which did not sit well with investors. Shares of IndusInd Bank plunged by 19%, contributing 130 points to the Sensex’s loss, while NTPC’s shares dropped by 4%.
Heavy Selling by Foreign Investors
After stimulus measures in China, foreign investors sold Indian stocks for 19 consecutive days this month. As of October 24, the Foreign Institutional Investors (FII) had sold stocks worth ₹98,085 crore.
High Bond Yields and Strong Dollar
With this, the 10-year Treasury yield fell to 4.1918% on Friday after falling by 4 basis points in the previous session, which still remains above 4%. On Wednesday it had reached a three-month high of 4.26%. The dollar index is also steady at 104.06 against six major currencies, showing a gain of 0.56% on the week.
The Indian stock market is a platform where shares of publicly listed companies are bought and sold. It plays a vital role in India’s economy, allowing companies to raise capital for growth and expansion, while offering investors a chance to earn returns by buying and selling shares.
The two main stock exchanges in India are:
- Bombay Stock Exchange (BSE):
- Established in 1875, it is the oldest stock exchange in Asia.
- It lists thousands of companies and has indices like SENSEX, which tracks 30 of the largest and most actively traded stocks on the BSE.
2. National Stock Exchange (NSE):
- Established in 1992, it is the largest stock exchange in India by trading volume.
- It has indices like NIFTY 50, which represents the top 50 companies listed on the NSE.
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