Sensex Plummets 3,000 Points Amid Bear Market Concerns

2025-02-17 economy

Mumbai, Monday, 17 February 2025.
In the past nine days, Sensex has plunged by 3,000 points, causing turmoil in the Indian stock market. Analysts forecast potential recovery opportunities for long-term investors by FY26.

Market Turbulence Intensifies

The Indian stock market is experiencing significant turbulence as the Sensex has dropped 3000 points over nine consecutive sessions as of February 16, 2025 [1]. This decline has particularly impacted smallcaps and microcaps, which have entered bear market territory [1]. The market’s downward trajectory is further evidenced by the Nifty recording its longest losing streak since 2019, with a 5% loss over nine sessions [1].

Foreign Investment Exodus

Foreign Institutional Investors (FIIs) have withdrawn over ₹1 lakh crore from the Indian market in 2025 [1], contributing to the bearish sentiment. The exodus is particularly concerning as it coincides with a period of weak corporate earnings, with the Nifty reporting single-digit PAT growth for three successive quarters [1]. Foreign Portfolio Investors sold equities worth ₹4,294.69 crore on February 14, 2025 [3], highlighting the ongoing pressure on market valuations.

Technical Analysis and Market Outlook

Market technicals indicate significant pressure, with the Nifty finding support at 22,800-22,700 levels and the Sensex at 75,400 [3]. The decline has been broad-based, with the market capitalization of eight of the top ten valued firms tumbling by ₹2 lakh crore [6]. Despite these challenges, there’s a potential silver lining as India’s GDP growth is forecast to increase from 6.4% in FY25 to 7.0% in FY26 [1].

Recovery Prospects and Long-term Outlook

Analysts at Emkay Global expect market stabilization to begin in Q1 of FY26 [1], though they warn that markets will remain volatile through Q4 FY25. The December 2025 Nifty target is maintained at 25,000 [1], suggesting potential upside from current levels. The BSE Sensex is expected to trade at 76,338.06 points by the end of this quarter, according to Trading Economics models [4], indicating possible near-term stabilization despite current turbulence.

Sources

sensex bear market