Sensex Falls More Than 11,000 Points from September Peak, Now Trading Below 75,000

On Monday, February 24, 2025, the BSE Sensex registered a significant fall in early deals. Trading at 74,525 points as of 10:58 AM, the index slipped below the 75,000 mark with a decline of 1.05%. This downturn is set against a backdrop of fragile global cues that have unsettled investor sentiment.

Global Influences and FII Activity

A confluence of external factors and persistent selling by foreign institutional investors (FIIs) has contributed to the recent slide. Notably, FIIs have emerged as net sellers totalling approximately ₹1.24 lakh crore in the current calendar year as of February 21, 2025. Such selling pressure has further dampened market vigour and contributed to the overall decline.

Sectoral Performance

While the BSE FMCG sector has managed to hold its ground, nearly all other sectors have traded in the red. Particularly, the BSE IT and BSE Telecom sectors experienced pronounced losses, falling by 2.19% and 1.94% respectively. The market’s advance-decline ratio is also concerning, with only six stocks advancing in contrast to 24 that have declined.

Key Contributors: Pullers and Draggers

The market movement has been notably influenced by the performance of specific stocks. HDFC Bank, Infosys, and ICICI Bank have been among the top draggers, exerting downward pressure on the index. Conversely, stocks such as M&M and ITC have managed to act as pullers, offering slight relief amid the general downturn.

Historical Perspective

In comparative terms, the current decline adds to a larger narrative. The BSE Sensex, which peaked in September last year, is now trailing by over 11,000 points from its highs. February’s performance, with a fall of 3.78%, marks the most significant drop in the month since the 2020 decline of 5.96%. On a year-to-date basis, the index is down by 4.63%, which offers a stark illustration of the prevailing market conditions.

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