On February 12, 2025, the Indian stock markets had a significant downturn, with steep declines in both huge indexes and more general market divisions.

Market Performance

The closing price of the BSE Sensex was 75,446.57, down 847.03 points, or almost 1%. In a similar vein, the NSE Nifty 50 dropped 250.25 points, or 1.08%, to finish at 22,821.55. Both large- and mid-cap equities as well as small-cap stocks were impacted by the widespread decline.

Sectoral and Broader Market Impact

The decline was widespread across various sectors:

• Small-Cap and Mid-Cap Stocks: The Nifty Midcap 50 down 2.45% to 13,903.95, while the Nifty Smallcap 100 index fell 3.14% to 15,570.05. The small-cap index dropped more than 20% from its December peak as a result of this decline, pushing it into bear market territory.
• Sectoral Indices: Every significant industry saw losses. The Nifty Media index down 2.50% to 1,499.55, while the Nifty Realty index fell 2.85% to 838.40.

Key Contributors to the Decline

Several factors contributed to the market’s downturn:

• Global Trade Concerns:A widespread sell-off resulted from investor concerns over U.S. tariff policies, with small-cap companies being especially impacted.
  
• Weak Domestic Earnings:Investor state of mind was further depressed by important corporations’ disappointing earnings results. 
• Foreign Institutional Investor (FII) Outflows: The markets were further strained by FIIs’ ongoing selling.

Notable Stock Movements

Heavyweight stocks experienced significant losses:

• Reliance Industries: The stock fell 3%, which was a significant factor in the indexes’ downfall. 
• Mahindra & Mahindra (M&M): The price fell to ₹2,980.55, a 3.42% decline.
• IndusInd Bank:There were also notable drops in the stock. 

Market Breadth

207 equities were rising and 2,348 were falling on the BSE, indicating a noticeably negative market breadth. While 2,362 equities fell, 220 stocks rose on the NSE. This suggests that there is general selling pressure.

Outlook

India’s inflation report, which is anticipated to reveal a dramatic decline in consumer inflation to a five-month low, is now being eagerly anticipated by investors. When predicting the market’s future course, this data will be essential.

In conclusion, concerns about global trade, poor local profitability, and ongoing FII outflows caused the Indian stock market to have a difficult session on February 12, 2025, with notable falls across major indices and sectors.

Amid worries about global trade, Indian markets are declining.