The Indian stock market experienced a sharp decline on February 28, 2025, due to weak global cues and escalating trade tensions. The Sensex plunged 1,414 points (1.9%) to close at 73,198, marking a monthly loss of 4,303 points (5.6%) and a 15% drop from its all-time high. Similarly, the Nifty 50 fell 420 points (1.86%) to settle at 22,125, recording a 5.9% decline in February and a 16% drop from its peak.
The downturn followed U.S. President Donald Trump’s announcement of tariffs on Canada, Mexico (starting March 4), and an additional 10% on China, triggering fears of a global trade war. The sell-off was broad-based, with all sectoral indices closing in the red. IndusInd Bank (-7%) led the losses, followed by Tech Mahindra, Tata Motors, Infosys, and Nestle India (-4% to -6%). Only HDFC Bank (+2%) managed to gain.
IT and auto stocks suffered the most, falling 4% each, while FMCG, healthcare, and capital goods declined over 2%. The BSE MidCap and SmallCap indices dropped over 2%, with the SmallCap index recording its steepest monthly fall in five years.
Investor sentiment remained highly negative, with 3,248 stocks declining out of 4,081 traded, and 476 hitting lower circuit limits. Analysts predict Nifty support at 21,800-22,000, with further downside risks if breached.
