Stock Market: There is a weak environment in the Indian stock market at this time, and experts say that this decline may increase further in the coming days. The market remains volatile, and the reason for the decline this time is domestic and global trade tariffs, withdrawal by foreign investors, and some other economic factors. Apart from this, investors will keep monitoring the global trade situation and the signals of the Indian economy for the next few days. Let us know why the condition of the Indian stock market can be weak and what are the reasons behind it.
Expert opinion and market condition
Vinod Nair, who is the Head of Research at Geojit Financial Services, says that the trend of the Indian stock market will depend on US trade tariffs, global trends, and trading activities of foreign investors during the next week. There is instability in the Indian market at this time, and this situation can become a matter of concern for domestic investors. Especially the withdrawal of foreign investors and trade tariff related issues can weaken the morale of the investors.
He said that the market conditions are likely to remain weak for the next few days, however, improvement is expected in the coming times when the first quarter results of the companies will be better and the uncertainties of global trade will reduce. Apart from this, the pace of growth of the Indian economy and the possibility of improvement in the profits of companies can also give some support to the market.
Market decline in February
The Indian stock market witnessed a massive decline during February 2025. The National Stock Exchange (NSE) Nifty index fell 1,383.7 points or 5.88 percent, while the 30-share BSE Sensex fell 4,302.47 points or 5.55 percent. This decline came at a time when the Sensex had reached its highest level of 85,978.25 on 27 September 2024, and since then the Sensex has fallen by 12,780.15 points or 14.86 percent.
Also, the Nifty has also seen a decline of 4,152.65 points or 15.80 percent from its highest level of 26,277.35 points on 27 September 2024. After this decline, there is an atmosphere of concern among the investors and there is an atmosphere of uncertainty in the market.
Macroeconomic data and its impact
Investors will also closely watch the manufacturing and services PMI (Purchasing Managers Index) data to be released by HSBC this week. These figures will give important indications about the Indian economy and may affect the market. Siddharth Khemka, Head-Research at Motilal Oswal Financial Services, believes that the market will trade in a weak trend due to the global slowdown and lack of signals on the domestic front.
India’s economy has registered a growth of 6.2 percent in the December quarter, the highest in the last seven quarters, but this growth has been less than the same quarter last year. However, this figure is less than the 6.8 percent estimated by the Reserve Bank of India (RBI). In such a situation, experts believe that the Indian economy will take more time to fully improve its position, especially when issues like trade tariff war with the US are in front.
Withdrawal of foreign investors and threat of trade war
Ajit Mishra, Senior Vice President (Research), Religare Broking Limited, says that volatility is often more important than actual events. Currently, the Indian stock market is worried about the possibility of a global trade war. Apart from this, the pressure of continuous selling by foreign institutional investors (FIIs) is also weighing on the Indian market. Withdrawal of foreign investors has put additional pressure on the Indian stock market.
Economic signals and GST collection
However, some positive signs of the Indian economy are also being seen. Goods and Services Tax (GST) collection has increased by 9.1 percent in February 2025, reaching around ₹ 1.84 lakh crore. This is indicating domestic consumption and it raises the hope that the Indian economy may soon move towards recovery.
₹ 35,204 crore has been received from Central GST (CGST), ₹ 43,704 crore from State GST (SGST), ₹ 90,870 crore from Integrated GST (IGST) and ₹ 13,868 crore from Compensation Cess. This figure is indicating improvement in domestic consumption, which is expected to gradually improve the Indian economy.
The condition of the Indian stock market is currently quite challenging, and it is expected to fall further in the coming days. However, it is also true that if global trade conditions improve and the results of companies come out better, then the market may gradually improve. At this time investors need to be cautious and they have to watch the market signals carefully. Experts believe that as long as the uncertainties of global trade war and withdrawal of foreign investors persist, the environment of weakness will continue in the market.
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