Sensex Slumps 1,600 Points in 5 Days – What’s Behind the Market Turmoil?

 

The Indian stock market has been facing intense selling pressure, with the Sensex tumbling over 1,600 points and the Nifty 50 slipping close to 23,250 in just five days. Investors have lost nearly ₹14 lakh crore as market sentiment remains weak.

 

On February 11, the Sensex opened at 77,384.98 but quickly dropped 380 points, while the Nifty 50 shed 120 points. Midcap and Smallcap indices also took a major hit, plunging over 2% during the session.

 

What’s Driving the Market Down?

 

Experts cite five key reasons for the ongoing downturn:

 

1️⃣ Heavy Foreign Selling – Global investors have been offloading Indian stocks due to rising US bond yields and a stronger dollar, reducing hopes for an interest rate cut by the US Federal Reserve.

 

2️⃣ Disappointing Q3 Earnings – While corporate earnings have slightly improved, they haven’t met expectations, raising concerns that stock prices are overvalued.

 

3️⃣ Rupee Under Pressure – The Indian currency has been struggling, nearing the 88-mark against the US dollar, further fueling foreign outflows.

 

4️⃣ Global Economic Uncertainty – Fears of a potential trade war and economic slowdown have added to the market's volatility.

 

5️⃣ Expensive Valuations – Even after recent corrections, analysts believe Indian stocks remain overvalued, keeping investor sentiment cautious.