Nifty50 Records Worst February Since COVID: Falls Below 22,600 as India VIX Rises

Recent developments in the US markets have reverberated across global indices. Concerns over softening consumer demand and uncertainty related to tariffs contributed to a sharp sell-off. Notably, US consumer sentiment reached a 15‑month low in February, thereby adding pressure on international investors and influencing market moods worldwide.

NSE Performance on Monday, February 24, 2025

The NSE benchmark Nifty50 index opened in negative territory for the 5th consecutive session on Monday, February 24, 2025. By 10:36 AM, the majority of sectors were trading in the red. This downward trend coincided with heightened global uncertainties and a cautious approach from market participants.

Sector Performance

Within the broad market decline, certain sectors managed to exhibit modest gains. Nifty Pharma and Auto registered slight increases of 0.22% and 0.08%, respectively. Conversely, Nifty IT emerged as the top loser, plunging nearly 2.5% as all its constituent stocks recorded losses. Overall, only 10 stocks were trading in green, indicating widespread selling pressure across most segments.

Key draggers in the index included prominent names such as HDFC Bank, Infosys, and ICICI Bank. Additionally, companies like M&M and Maruti featured among the top pullers, underscoring the challenges faced by even the most established entities during this period of market stress.

Historical Context and Year-to-Date Trends

For the month of February 2025, the Nifty50 has recorded a nearly 4% decline – the steepest monthly fall since 2020, when the index experienced a 6.36% drop. This marks the sharpest contraction since 2016. On a year-to-date basis, the index is down 4.56%. Moreover, from its September high of 26,277, the Nifty50 has seen a reduction of over 14%, reflecting a pronounced market correction over recent months.

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