The Indian stock markets witnessed a sharp decline on February 28, 2025, as investors reacted to global economic pressures and new tariff threats from the United States. The Bombay Stock Exchange (BSE) Sensex and the National Stock Exchange (NSE) Nifty 50 tumbled significantly, reflecting unease among traders and foreboding economic indicators.
At the opening of the trading day, the Sensex fell 1,009.73 points or 1.35% to 73,602.70, its lowest point since the beginning of the month, and the Nifty was down 312.35 points or 1.39% at 22,232.70, nearing the worrying threshold of 22,300. This decline was primarily influenced by the announcement from U.S. President Donald Trump, who confirmed the impending tariffs against Canada and Mexico set to take effect on March 4.
The market capitalization of all listed companies was drastically affected, decreasing by ₹5.8 lakh crore, with the total market capital now resting at ₹387.3 lakh crore. The broader BSE MidCap and BSE SmallCap indices experienced losses of over 2% each. Specifically, the Nifty IT index sank down 3.40%, leading the drop among sectoral indices, followed closely by declines of more than 2% each for the Media and Auto sectors.
Global markets are contributing to the wave of selling; overnight, the Wall Street indices ended lower with the S&P 500 down 1.59%, the Nasdaq Composite down 2.78%, and the Dow Jones Industrial Average losing 0.45%. Notably, shares of Nvidia saw sharp declines, plummeting over 8%, which fueled negative sentiment among tech stocks globally.
Despite the negative climate, there were slight rays of positive movement elsewhere, with Coal India seeing some gains amid general market pessimism. The state-run company's shares edged up slightly following its announcement of the new "Singrauli Punarasthapan Charge" of ₹300 per ton, effective May 1, 2025, which is expected to boost future revenues.
With eyes fixed on economic indicators, investors are eagerly awaiting the official GDP data set to be released later today at 5:30 PM. The forecasts suggest growth may slow based on recent economic conditions, which has only exacerbated market volatility.
"The market sentiment is cautious as all major indices open on the back foot, particularly with uncertainties surrounding the economy and the new tariffs," said market expert Anil Singhvi. He added, "With Nifty closing near 22,300, the pressure remains on other sectors as well, particularly IT and banking."
Within the Nifty 50, losses were widespread. IndusInd Bank, Tech Mahindra, and Infosys were among the top laggards, with declines ranging from 3% to over 5%. Almost every Nifty stock was seen trading lower, reflecting deep investor concern.
The Sensex and Nifty have now recorded declines for five consecutive months—an unprecedented streak not seen since 1996. The current market conditions are making investors jittery, as each trading session seems to bring fresh losses, spurring fears of economic downturn.
"We are entering March amid serious uncertainties, and all indicators point to continued volatility. Unless we see stronger economic guidance or policy changes, the markets might struggle to recover soon," cautioned another financial analyst.
Speculation around the U.S. tariffs has been rampant, traditionally impacting global markets and causing ripples across the Indian economy. Trump also threatened tariffs on the European Union, opening up yet another front of uncertainty for traders.
Meanwhile, local sentiment was affected by the negative start across several other sectors, including automotive and pharmaceuticals. Analysts are bracing for extraction of more unfavorable trends as they dissect upcoming earnings reports and GDP figures.
The rupee also faced pressure against the U.S. dollar, closing at ₹87.2, indicating strained foreign exchange conditions magnified by the uncertainty surrounding international trade policies. This has raised apprehensions about the overall domestic economy.
The upcoming trading sessions are expected to reflect the impact of the GDP release, with many investors hoping for positive surprises to restore some confidence. With rumors swirling, volatility is sure to ensue as market participants gauge new information against the backdrop of existing turmoil.
The continuing pressure on the Nifty also points toward possible economic hurdles. The index has now dipped below levels last witnessed months ago, pushing financial experts to recalibrate their projections for the remainder of the fiscal year.
With all eyes on both domestic and international developments, traders are urged to tread carefully and remain informed as the situation continues to evolve. The roller coaster nature of the current market presents challenges, but sound strategy and cautious optimism may navigate savvy investors through these turbulent times.
Overall, February 28, 2025, is shaping up to be another challenging day for Indian markets—a day characterized by turbulence, heavy selling pressure, and the anticipation of economic indicators to guide markets forward.