It is like 4th week and Indian Stock Market is continuously crashing, SENSEX started from 83000 mark and now when I writing this article it is around 73000. So it crashed almost 12.5%. People are worried why Market is behaving like this. Let’s discuss the few major reasons behind this market crash and most important thing is when will it stop?
Note: Prompt Used to make this image
https://ideogram.ai/g/MzT2iJ7XSe2wsOLu62QZNA/3
A minimalistic yet powerful digital artwork illustrating the theme ‘Stock Market Crash 2025’. The image features bold, modern typography displaying ‘Stock Market Crash 2025’ in the center, using a large, highly readable white font. The background is deep black, creating strong contrast. A distressed investor sits at a desk in the foreground, with both hands over their head, symbolizing worry and panic. The investor is depicted in grayscale, emphasizing emotional distress. Subtle red downward-trending stock charts and financial elements appear in the background, reinforcing the theme without overwhelming the composition. The overall design is clean and striking, using only black, white, grayscale, and red to maintain focus on the typography and central figure.
Look stock market crashes and bounces everyday but right now what we are seeing is rare. Today on 28th Feb 2025 Nifty 50 breaks 30 year record because it is falling continuously since 5 months. (Live Mint Article)
When it started? – The Timeline
About 4 to 5 months ago when Indian stock market started to fall people thought that ahhh it is small correction… not to worry… that happens now and then…
BUT now after 5 months that small fall is converted in to BLOOD BATH🩸. Right now investor’s sentiment towards market is very negative. People are staying away from Stock Market.
Previously high flying stocks are now falling without any bottom support. It is like freefall in a Blackhole
Previously Indian stock market was the first choice to invest for Foreign Portfolio Investors.
But now the same investor is removing their money from stock market and yes it is like a hell for Indian Investors.
Millions of dollars vanished in these 5 months.
Since October 2024 Nifty50 has closed each month in red. So it is continuous 5 month red closing.
Analysis of the Chart from Sep 24 to Feb 25
Just look at the below image so that you can have the idea about the timeline
As you can see above Nifty50 made the high on 26 September 2024, those were the days when US election was near and everything was uncertain who was going to win and who was going to lose.
Since then market is in decline phase and Nifty50 is down by 12.48%. So, you pick any chart like SENSEX, Nifty100, Nifty500 the result will be the same. We can say that the whole stock market gone through a decline phase for October, November, December, January and February. Continuous 5 month streak!! Well this streak is bad for India and Indian Investors.
So why it broke all records? And which records it broke?
- Nifty50 was launched in July 1990. So this is the second worst monthly loosing streak
- Since 1990, this is the 3rd time when Nifty50 was declining since 5 months.
- Longest was from September 1994 to April 1995 which lasted for 8 months during which Index lost 31.4%
- If this streak continues then it will become the 2nd most longest monthly losing streak
| No. of Consecutive Monthly Loss | Dates | Fall in Nifty |
| 8 | Sep 1994 to April 1995 | -31.4% |
| 5 | July 1996 to Nov 1996 | -26% |
| 4 | Oct 1990 to Jan 1991 | -28.5% |
| 4 | May 1998 to Aug 1998 | -26.4% |
| 4 | June 2001 to Sep 2001 | -21.8% |
| 5* (not out) 😂 | Oct 2024 to Feb 2025 (Continues) | -11.7% |
So Are we in a Bear Market?
First lets make something clear when market falls below 20% then we can call we are in a Bear market.
Right now our SENSEX is hanging between 15-20% fall. So, we are right at the edge.
Our BSE 500 has total 500 stocks and from that 481 stocks are down over 10% from 52 Weeks Highs
– Mint Market
Reasons Behind this Fall.
There are several reasons lets discuss one by one
Reason 1: Relentless selling from overseas investors
In just 5 months from October 2024 to February 2025 foreign investors removed their ₹3.11 Lakh Crore.
Why? 3rd Quarter results of Indian Companies was not good and overall valuations was high.
Reason 2: Tariff King Donald Trump
The fear of Donald Trump’s tariff is so high that people are afraid of investing money in stock market and removing their investments.
Reason 3: Recovery in Chinese Market
Since, October 2024 India’s market capitalization shrunk by $1 Trillion Dollars but China’s capitalization increased by $2 Trillion Dollars. Chinese Hang Sang Index is up by 18% in just ONE MONTH!!
Current Trend is like “Sell India, Buy China”
Conclusion & Advise to Indian Investors
To conclude the article just observe the data in below table
Stock Market Crash & Recovery
| Year | Crisis | Fall | Recovery Days |
| 1992 | Harshad Mehta Scam | 54% | 658 |
| 2001 | Dot Com Bubble | 53% | 1393 |
| 2008 | Financial Crisis | 65% | 1036 |
| 2016 | Demonetization | 12% | 167 |
| 2020 | Covid | 38% | 300 |
| 2025 | (We Don’t Know) | 14% | ??? |
From Above table what we can see that there is NO specific time of recovery,
And if Some one saying that market will recover in this much time then he is lying. Do NOT TRUST him.
No Matter how much analysis you do, No matter how many videos you see and No matter how many blogs you read.
No one actually knows when the market will recover. All you can do is continue your SIPs as long as possible because as an Investor India’s Story in Long-term is a GROWTH STORY
Take a Good nap! Stay Relaxed Investment is Long-term game not the Short-term!
