In 2019, the markets fell 5.16 percent during a nine-session losing streak that lasted from April 30 to May 13. With early trading still down today, the most recent decline has already lasted eight straight sessions and might result in the longest losing stretch in six years.
Sensex and Nifty extended their losses in Monday’s trading session as the headline indices slumped further amid sustained foreign fund outflows and concerns over weak corporate earnings.
The NSE Nifty dropped 203.8 points, or 0.88 percent, to 22,725.45, while the BSE Sensex dropped 644.45 points, or 0.84 percent, to 75,294.76. The indices had displayed hints of weakness in early trading, with the Nifty dropping 119.35 points to 22,809.90 and the Sensex beginning 297.8 points lower at 75,641.41.
Mahindra & Mahindra, Tata Steel, Infosys, Tech Mahindra, TCS, and ICICI Bank were among the Sensex pack’s biggest laggards.
The Sensex has lost 2,644.6 points, or 3.36 percent, over the last eight trading days, while the Nifty has lost 810 points, or 3.41 percent. In 2019, the markets fell 5.16 percent during a nine-session losing streak that lasted from April 30 to May 13. With early trade still in the red, the most recent decline has now lasted eight straight sessions and may have resulted in the longest losing sequence in six years.
Key factors weighing on market sentiment:
1) Weak Q3 earnings: Despite corporate earnings falling short of expectations, investor mood is still muted. Concerns about excessive valuations are raised by the third quarter’s moderate earnings increase of about 7%. “The primary cause of the persistent FII selling that has pulled the market lower is the decline in corporate earnings. The problem has been made worse by the dollar’s appreciation, according to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
According to Amish Shah, research analyst at BofA Securities India, “we expect single-digit (percent) returns for Nifty in 2025 and small and midcaps to see negative returns,” she told Reuters.
It will be difficult to defend Nifty’s valuation expansion given the slowing corporate and economic development, Shah noted, while midcaps and smallcaps might experience a further contraction as a result of their high valuations.
2) Rupee depreciation: Due to poor domestic stocks and inflows of foreign funds, the Indian rupee fell 5 paise to 86.76 against the US dollar on Monday. Because the currency is close to its lowest point ever, imports are more expensive and inflationary pressures are increased.
3) Global trade concerns: Market volatility has increased due to uncertainty surrounding US trade policy. Concerns about interruptions to global commerce have been heightened by US President Donald Trump’s tariff plans, which investors are closely monitoring. “Until there is clarity on tariffs and a recovery in corporate earnings, volatility is expected to persist,” stated Vinod Nair, Head of Research at Geojit Financial Services.
4) Persistent FII selling: According to depository statistics, Foreign Portfolio Investors (FPIs) sold off stocks worth Rs 4,294.69 crore on Friday, bringing the overall outflow in 2025 to Rs 99,299 crore, almost reaching the Rs 1 lakh crore milestone. Due in large part to worries about US tariffs and the state of the world economy, FPIs withdrew Rs 21,272 crore in just the first two weeks of February. This came after January’s net outflow of Rs 78,027 crore.
Technical outlook: Experts in the market warn that more declines are expected. Religare Broking Ltd.’s SVP-Research, Ajit Mishra, noted that several retests of the January low at 22,800 have undermined its support, raising the possibility of more falls. “The 22,100–22,500 range is the next important Nifty support levels. The 20-day exponential moving average (DEMA) of 23,350 and 23,600 provide immediate resistance on the upswing, he stated.
Analysts point out that IT and financial equities have proven more resilient despite the overall decline. Given the ongoing pressure on important indices, investors are encouraged to exercise caution and refrain from bottom fishing in the current market environment.
