Over 1,100 BSE stocks hit 52-week lows amid market rout
What's the story
The Indian equity markets are witnessing a major bloodbath, with more than 1,100 BSE stocks hitting their lowest levels in the last one year.
The slump comes as foreign outflows, disappointing corporate earnings, and global trade concerns have been weighing on investor sentiment.
Among the worst-hit are popular names like Tata Motors and Reliance Industries Ltd (RIL), whose stock prices have taken a major hit.
Market impact
Blue-chip stocks hit 52-week lows
Prominent blue-chip stocks including State Bank of India, Asian Paints, Hindustan Unilever, and Titan have all hit their lowest levels in the past year on the 30-stock Sensex index.
The BSE 500 index also mirrored this broader market weakness, with companies such as Bank of Baroda, Bajaj Auto, DMart and Britannia hitting new lows.
This widespread decline highlights the severe impact of current market conditions on major Indian corporations.
Index performance
Nifty 50 nears bear market territory
The benchmark Nifty 50 index's losing streak extended to nine consecutive sessions today, taking its total decline to nearly 16% from its all-time high of 26,277.
The index now sits just 1,103 points away from entering bear market territory—a 20% drop from peak levels.
Meanwhile, India's midcap and smallcap stocks posted their worst monthly losses since March 2020's COVID-19-led market meltdown.
Investor behavior
Foreign portfolio investors (FPIs) have been relentless sellers
Foreign portfolio investors (FPIs) have been relentless sellers, offloading more than ₹3 lakh crore worth of Indian equities over the past five months.
FPIs were net sellers of ₹58,988 crore in February alone.
The market weakness comes amid rising global trade tensions, particularly concerns over the potential imposition of fresh tariffs from the US under the Trump administration.
Economic outlook
India's economic indicators show mixed signals
India's economic indicators have been mixed. GDP growth for FY25's third quarter stood at 6.2%, up from 5.6% in the previous quarter, supported by government consumption and private sector spending.
However, inflationary pressures eased with CPI inflation declining to 4.3% in January from 5.2% in December.
The Reserve Bank of India (RBI) cut its policy rate by 25 basis points in February signaling a more accommodative stance amid global uncertainties including potential US trade tariffs and sustained capital outflows.