BSE Sensex Slides Amid Market Turmoil: Investor Wealth Shrinks by Over ₹27 Lakh Crore

The Indian stock market remained under pressure as the BSE Sensex slipped by 0.30% or 222 points, trading near 75,700 by midday on February 17, 2025. The benchmark index opened lower and extended its decline, falling below the previous session’s low. However, partial recovery was seen from the day’s lows, led by HDFC Bank and Reliance Industries, which provided some support to the index.

On the flip side, ICICI Bank and Mahindra & Mahindra (M&M) weighed on the Sensex, limiting the extent of the rebound.

Sectoral Performance: All Sectors in the Red

The market-wide weakness was reflected across all sectors, with every BSE sectoral index trading in negative territory. The decline was led by:

• BSE Industrials (-1.24%)
• BSE Telecom (-1.2%)

Investor Wealth Shrinks by Over ₹27 Lakh Crore

The ongoing downturn has significantly impacted investor sentiment, with a total market capitalisation of BSE-listed companies falling sharply. As per data from the Bombay Stock Exchange (BSE):

• On February 5, 2025, the total market capitalisation stood at ₹428,03,611.66 crore.
• By February 14, 2025, after eight consecutive sessions of losses, it had dropped to ₹400,99,281.11 crore, marking a decline of over ₹27 lakh crore.

With February 17, 2025, extending the downtrend, India’s market capitalisation hit an 8-month low, falling below ₹400 lakh crore for the first time since June 2024.

Foreign Investor Sell-Off Intensifies

One of the major contributors to the persistent market decline has been the aggressive selling by Foreign Institutional Investors (FIIs).

• FIIs have pulled out over ₹1 lakh crore from Dalal Street in 2025 alone.
• The outflows reflect growing caution amid global economic uncertainties and trade war concerns, which continue to impact emerging markets like India.

With global markets facing volatility and uncertainty, FIIs are expected to remain cautious, further influencing market sentiment in the near term.

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