$1 trillion wiped out! Indian stock market crash shrinks its share in global market cap

What a fall! BSE Sensex and Nifty50 have plunged drastically from their lifetime peaks in a matter of some months. According to a Bloomberg report, the Indian stock market decline has erased over $1 trillion in market worth in the course of the earlier 4 months! This has led to a discount in India’s portion of worldwide market capitalisation.
Based on a 20-day common calculation, India’s share of global fairness market worth is approaching 3%, displaying a big lower from its highest level of over 4% recorded in the earlier 12 months, the report mentioned.
The Indian stock market is experiencing an unusually extended downturn, with a 16% decline from its peak – a correction section that has lasted considerably longer than typical market changes exterior main global crises.
Historical information inspecting 20 earlier cases of market corrections exceeding 10% (excluding the global monetary disaster and Covid-19) reveals that commonplace corrections averaged 14% and sometimes resolved inside 70 days, states an ET report.
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The present state of affairs stands aside, with the Nifty 200 experiencing a considerable 16% lower over 165 days, establishing this as one of the important and prolonged downturns in latest market historical past.
This correction differs from earlier market declines, which had been primarily attributable to important global occasions. The current downturn lacks a significant exterior catalyst, other than US trade-related tensions. The major components look like home financial challenges, together with poor company efficiency, excessive valuation ranges, and steady Foreign Institutional Investor withdrawals.
What initially appeared as a typical market adjustment has advanced right into a persistent decline, affecting each lively merchants and buy-and-hold buyers.
The steady decline in the Nifty since September, extending throughout roughly six months, represents an uncommon sample. This gradual however persistent downturn presents a notable distinction to the earlier prolonged bull market section, which continued for 55 months with out experiencing even a 5% discount.
The BSE100 firms, comprising main and incessantly traded corporations on the Bombay Stock Exchange, witnessed their income progress decelerate to one-third in the earlier calendar 12 months versus 2023, while their web revenue progress accelerated fivefold, demonstrating profitable value administration methods.
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Analysis of BSE100 information by the monetary each day, which presents a complete view of India’s fairness markets past the Sensex, indicated appreciable deceleration throughout industrial, service and client sectors.
These organisations recorded a 9% improve in revenues and 32% progress in web revenue throughout 2024, in distinction to 25% gross sales progress and seven% revenue improve in 2023.
“It is largely due to a slowdown in the overall consumption segment as well as oil, gas and steel businesses, where prices essentially remained benign and hurt value growth,” Madan Sabnavis, chief economist, Bank of Baroda was quoted as saying. “If BFSI is excluded, the overall growth will moderate even further. While profit was higher, it was largely due to high base effect, cost control by companies that include cost of production, and marginal salary hikes.”
According to Sabnavis, these organisations are anticipated to ship improved collective outcomes in the upcoming 12 months.

Sensex outlook: Worst over?

Morgan Stanley maintains its year-end Sensex projection of 105,000 factors by December 2025, regardless of latest global tariff conflicts. Morgan Stanley’s crew, headed by Ridham Desai, identifies India as ‘A stock pickers’ market’ and notes that India’s comparative earnings progress is enhancing, even contemplating conservative consensus estimates.
A separate evaluation from Morgan Stanley means that India’s place, with minimal share in global manufacturing exports however substantial presence in providers exports, might show advantageous throughout worldwide commerce disputes.
“Valuations are the most attractive since the Covid pandemic. The market has ignored the RBI’s policy pivot, and a strong budget from the government, among other positive developments since early February. India’s low beta characteristic make it an ideal market for the uncertain macro environment that equities are dealing with. Importantly, our sentiment indicator is in strong buy territory,” Desai’s report says.
Global Market Turmoil: US equities bleed as effectively
US fairness markets have seen a $4 trillion decline in market capitalisation, getting into correction territory with a drop exceeding 10% from their December excessive. The substantial decline stems from financial uncertainties, recession considerations and rising commerce disputes, triggering widespread promoting that has erased huge quantities of market value.
The expertise sector has skilled the steepest declines. Tesla witnessed a single-day worth erosion of $125 billion, while Apple and Nvidia every declined roughly 5%. The expertise element of the S&P 500 registered a 4.3% fall. Additionally, Delta Air Lines shares tumbled 14% following the airline’s announcement of halved first-quarter revenue projections.