$1 trillion wiped out! Indian stock market crash shrinks its share in global market cap – The Times of India

India’s share of global fairness market worth is approaching 3%, exhibiting a major lower from its highest level of over 4%. (AI picture)

What a fall! BSE Sensex and Nifty50 have plunged drastically from their lifetime peaks in a matter of just a few months. In line with a Bloomberg report, the Indian stock market decline has erased over $1 trillion in market worth throughout the earlier 4 months! This has led to a discount in India’s portion of worldwide market capitalisation.
Primarily based on a 20-day common calculation, India’s share of global fairness market worth is approaching 3%, exhibiting a major lower from its highest level of over 4% recorded in the earlier yr, 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.
Historic knowledge inspecting 20 earlier situations of market corrections exceeding 10% (excluding the global monetary disaster and Covid-19) reveals that customary 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 probably the most vital and prolonged downturns in current market historical past.
This correction differs from earlier market declines, which have been primarily brought on by vital global occasions. The current downturn lacks a serious exterior catalyst, except for US commerce-associated tensions. The major components seem like home financial challenges, together with poor company efficiency, excessive valuation ranges, and steady Overseas Institutional Investor withdrawals.
What initially appeared as a regular market adjustment has developed right into a persistent decline, affecting each lively merchants and purchase-and-maintain traders.
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 corporations, comprising main and often traded corporations on the Bombay Stock Alternate, witnessed their income development decelerate to at least one-third in the earlier calendar yr versus 2023, while their internet revenue development accelerated fivefold, demonstrating profitable value administration methods.
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Evaluation of BSE100 knowledge by the monetary day by day, which gives a complete view of India’s fairness markets past the Sensex, indicated appreciable deceleration throughout industrial, service and shopper sectors.
These organisations recorded a 9% enhance in revenues and 32% development in internet revenue throughout 2024, in distinction to 25% gross sales development and seven% revenue enhance in 2023.
“It’s largely as a result of a slowdown in the general consumption phase in addition to oil, gasoline and metal companies, the place costs primarily remained benign and harm worth development,” Madan Sabnavis, chief economist, Financial institution of Baroda was quoted as saying. “If BFSI is excluded, the general development will average even additional. Whereas revenue was greater, it was largely as a result of excessive base impact, value management by corporations that embody value of manufacturing, and marginal wage hikes.”
In line with Sabnavis, these organisations are anticipated to ship improved collective outcomes in the upcoming yr.

Sensex outlook: Worst over?

Morgan Stanley maintains its yr-finish Sensex projection of 105,000 factors by December 2025, regardless of current global tariff conflicts. Morgan Stanley’s workforce, headed by Ridham Desai, identifies India as ‘A stock pickers’ market’ and notes that India’s comparative earnings development is bettering, 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, may show advantageous throughout worldwide commerce disputes.
“Valuations are probably the most engaging for the reason that Covid pandemic. The market has ignored the RBI’s coverage pivot, and a robust price range from the federal government, amongst different constructive developments since early February. India’s low beta attribute make it an excellent market for the unsure macro atmosphere that equities are coping with. Importantly, our sentiment indicator is in robust purchase 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 issues and rising commerce disputes, triggering widespread promoting that has erased huge quantities of market value.
The know-how 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 know-how part of the S&P 500 registered a 4.3% fall. Moreover, Delta Air Traces shares tumbled 14% following the airline’s announcement of halved first-quarter revenue projections.