The Indian share market has witnessed a massive fall since the beginning of 2025. There has been a trend of constant sell-offs by foreign investors, leading to a loss of over Rs 50 lakh crore in market capitalization in just 2 months of 2025.

In the meanwhile, Sensex has dropped over 5,300 points since January 1, where Nifty50 dropped over 1,600 points during this period. Also, Foreign Investors withdrew Rs 1,12,601 crore from the Indian equities during the given time period.

According to the data available at the Bombay Stock Exchange (BSE), the total market capitalization of listed companies stood at around Rs 445 lakh crore on January 1, 2025, but has dropped to approximately Rs 393 lakh crore as of the end of February.

This sharp decline reflects heightened investor concerns, driven by global economic uncertainties, rising interest rates, and geopolitical tensions. The continuous outflow of funds from domestic and foreign investors has contributed to the sharp erosion of market value.

Share Market Bloodbath: What Experts Are Saying?

Ajay Bagga Banking and Market Expert told ANI “With Nifty 50 down 16% and mid-cap and small cap indices down more than 20% each since the September all-time highs, investor wealth in Indian markets has reduced by around USD 850 billion since Sep last week. In Jan to Feb, around $550 billion wealth erosion has happened in terms of market cap fall”.

The markets are largely in selling mode because of the fear of implementation of 25% on US imports from Canada and Mexico, which is set to take effect in the coming week.

Experts believe that factors such as earnings reports will play a crucial role in determining market trends in the coming months.