Sensex, Nifty fall up to 14% from record highs; is the market bottoming out?

The Indian stock market has corrected up to 14% from record highs in five months. The correction is not over yet, say analysts signaling more downside for Sensex and Nifty in the near future. Falling for the fifth straight month, Sensex and Nifty have lost 13.40% and 14.17%, respectively from their record highs in September end last year. The market fell for the fifth straight session on Monday, reeling under weak global cues, lacklustre Q3 earnings season, rising concerns over US President Donald Trump’s reciprocal tariff threats and persistent selling by foreign institutional investors (FIIs). 

Amid the ongoing correction, Sensex is down 4.72% and Nifty has lost 4.62% in 2025. In the current session, Sensex slipped 856 pts to 74,454 and Nifty has lost 242 pts at 22,553. 

In the current session, investor wealth slipped by Rs 4.03 lakh crore to Rs 397.97 lakh crore. The market capitalisation of BSE-listed firms stood at Rs 402 lakh crore on February 21.

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities is bearish on the market in the near term. "A reasonable negative candle was formed on the daily chart with gap down opening and with minor upper shadow. Technically this market action signals a downside breakout of the support as well as the short-term range movement at 22700 levels. This is not a good sign. The underlying trend of Nifty continues to be negative. There is a possibility of more weakness down to the next support of 22400 levels (20- month EMA) in the short term. Immediate resistance is placed at 22,750 levels, " said Shetti. 

Rupak De, Senior Technical Analyst at LKP Securities said, "Nifty has broken down from a bearish flag and pole pattern, signaling the start of a correction. From here, the index may continue to decline in the short term, moving toward lower levels. Immediate support is seen at 22,450, and a drop below this level could trigger a further correction toward 22,200 or lower. On the upside, immediate resistance is observed in the 22,670-22,700 range"

Stocks such as HCL Technologies, Infosys, Zomato, TCS, Tata Steel and Bharti Airtel led the losers on Sensex, falling up to 3.32%. On the other hand, M&M, ITC, Kotak Bank, Maruti, Nestle India, Axis Bank and HUL were the only Sensex gainers, rising up to 1.58%. 

All 13 sectoral indices were trading in the red on BSE.  

As many as 50 stocks hit their 52-week highs today. On the other hand, 261 shares fell to their 52-week lows on BSE today

IT stocks were the top losers with the BSE IT index falling 1034 pts to 38,729. Metal and capital goods indices also slipped 630 pts and 640 points, respectively. 

Vinod Nair, Head of Research, Geojit Financial Services said, "Global headwinds continue to weigh on the domestic market, with persistent volatility causing uncertainty among retail investors, who generally have a lower risk appetite. Weak US consumer sentiment and tariff concerns may further pressure export-oriented sectors such as IT. Looking ahead, the pace of earnings downgrades is expected to ease, supported by increased government spending, lower interest rates, and tax reductions. These factors are likely to provide a boost to sectors such as FMCG, consumer discretionary, and banking."

Prashanth Tapse, Senior VP (Research), Mehta Equities said, "The market is more concerned about the US' likely move to reciprocate higher tariff levies on exporting nations, which could impact developing countries including India. Also, FIIs showing no signs of putting brakes on their India exit strategy continue to weigh heavily on markets, with expensive valuations driving investors to curb their equity bets here. Heavy selling in banking, IT, telecom & other old economy sectors saw benchmark Sensex end below the crucial level of 75k mark.”

Market breadth was in red. Out of 4,200 stocks traded, 1207 stocks were in the green on BSE. Around 2810 stocks ended in the red while 183 stocks remained unchanged.

Around 5 stocks hit their lower circuits. On the other hand, 12 shares hit their upper circuit limits amid weak sentiment on BSE.

BSE midcap index fell 316 pts to 40,057. BSE small cap stock index crashed 601 pts to 45,254 level, indicating weakness in the broader market.

Foreign institutional investors sold Rs 3,449 crore worth of equities on a net basis on Friday, while domestic investors bought Rs 2,884 crore of shares, as per provisional NSE data.

Previous session 

Sensex fell 425 points to 75,311 and Nifty closed 117 pts lower at 22,796 on Friday.