In a Bear Grip

Benchmark equity indices have fallen 14% in the last five months. Experts say a recovery is some months away

- BY RAHUL OBEROI

Panic and uncertainty—these two words describe the current sentiment in Indian equity markets, which declined for the fifth straight month in February, marking the Nifty’s longest losing streak since 1996. The pain is real. The market capitalisation of listed firms tanked by more than ₹90 lakh crore during October 2024-February 2025, as clouds of uncertainty grew darker with worsening global cues, slowdown in earnings growth and unabated outflows by global investors amid a falling rupee. FIIs offloaded shares worth ₹2.12 lakh crore during October 2024-February 2025. At the same time, the rupee depreciated by 4.4% to 87.47 against the dollar, reaching an all-time low of 87.99 on February 10, 2025.

The question everyone is asking Is, where is the market headed and when will it bottom out? “We expect a prolonged consolidation until foreign investors, driven by the market’s attractiveness and India’s robust macroeconomic outlook, resume buying. The Nifty50 may bottom out around 21,500,” says Kranthi Bathini, Equity Strategist at WealthMills Securities.