Share Market Down: Foreign Investors Have Sold Stocks Worth ₹36,976.70 Crore in February So Far

The Indian stock markets witnessed a sharp decline once again on Monday, February 24. In early trading, the Sensex plunged over 700 points, while the Nifty also fell by nearly 200 points, breaking the crucial 22,600 level. Continuous selling by foreign investors and uncertainties surrounding Donald Trump’s tariff policy have weakened investor sentiment. The BSE Midcap and Smallcap indices also dropped by up to 2% during trading. In fact, all sectoral indices were trading in the red, with the IT index suffering the most, falling by more than 2%.

Around 9:55 AM, the Sensex was down 703 points, trading at 74,620.30, while the Nifty slipped below the 22,600 mark to 22,591. Here are the four key reasons behind this market decline:

1. Weak Global Cues

The pressure on Indian markets is primarily due to the decline in global markets, especially the US stock market. The US markets closed lower in the last session due to concerns over sluggish consumer demand and tariff-related risks. Consumer sentiment in the US has dropped to its lowest level in 15 months. Inflation is expected to rise in the US due to tariff measures, leading to fears of stagflation—a situation where economic growth slows while prices continue to rise. This is particularly concerning for the IT sector.