Market Plunge: Sensex Falls 10,000 Points from Peak – Why Retail Investors Must Reassess Their Portfolios Immediately

Harkhabar247 | February 18, 2025

The Indian stock market witnessed a downward trend on February 18, 2025, with both the Nifty 50 and Sensex extending their losses. The primary factors behind this decline were the sharp fall in ICICI Bank and Mahindra & Mahindra (M&M) shares, which weighed heavily on the benchmark indices. Additionally, the NSE Nifty PSU Bank index emerged as the worst-performing sector during the early trading session.

Despite the bearish sentiment, market experts remain optimistic about India’s long-term growth, with key industry leaders highlighting the maturity of Indian equity markets and increasing foreign investor interest. Meanwhile, some individual stocks, such as ABB India and Tech Mahindra, saw positive movements due to strong earnings reports and strategic business decisions.

Market Highlights and Key Developments

Morgan Stanley’s Mrs.R.Desai Remains Bullish on Indian Markets

R. Desai, Head of India Equity Research at Morgan Stanley, shared an optimistic outlook on India’s economic recovery. According to Desai, the Indian market has already moved past its recent economic slowdown and is poised for strong long-term growth.

He also pointed out that foreign investors currently hold the lowest exposure to Indian equities in decades, suggesting potential future inflows. Additionally, he dismissed concerns over US policy changes under President Donald Trump, stating that the India-US relationship remains strong and will continue to foster cooperation.

Desai also highlighted an interesting trend—Indian households have historically preferred investing in gold over equities, a pattern that continues to influence market behaviour.

Market Experts Discuss the Maturity of Indian Equity Markets

At the a media Conclave, prominent market analysts, including R .Desai (Morgan Stanley), D.Thakkar (Angel One), and A.K Chauhan (NSE), discussed the evolution of Indian stock markets. They how retail investor participation has played a crucial role in making India’s stock markets more resilient and mature over time.

Zen Technologies Shares Plunge 30% in Two Days

Shares of Zen Technologies Ltd. suffered a sharp decline, dropping 10% on Tuesday, following a 20% drop on Monday. The steep decline was triggered by disappointing Q3 earnings, which fell below analysts’ expectations, leading to increased selling pressure on the stock.

Tech Mahindra Announces Merger with Subsidiary

In a significant corporate move, Tech Mahindra Ltd. announced the merger of its subsidiary, Cerium Systems, with the parent company. The news, revealed through an exchange filing, has sparked strong investor interest, as it is expected to improve operational efficiency and business synergies.

ABB India Shares Rally on Strong Q3 Earnings

ABB India Ltd. delivered impressive Q3 results, reporting a 55.75% jump in consolidated net profit. The company’s net profit surged to ₹528 crore, compared to ₹339 crore in the previous quarter. This strong financial performance led to a positive response from investors, pushing ABB India’s stock price higher.

Vedanta Shares Decline Ahead of Creditors’ Meeting

Vedanta Ltd. faced selling pressure, as investors remained cautious ahead of a creditors’ meeting to discuss the company’s proposed demerger plan. The plan aims to split Vedanta into five separate entities, a move that could have significant implications for the company’s future.

Zaggle Prepaid Ocean Services Partners with Redington

In a strategic business move, Zaggle Prepaid Ocean Services Ltd. announced a five-year partnership with Redington. This collaboration is expected to drive future growth and expand the company’s market presence.

Stock Market Performance: Nifty and Sensex Under Pressure

NSE Nifty 50 and BSE Sensex

Both the NSE Nifty 50 and BSE Sensex opened in negative territory due to weakness in key stocks such as Reliance Industries Ltd. (RIL) and State Bank of India (SBI).

•Nifty 50 was down 39.50 points (0.17%) at 22,920.00

•Sensex dropped 107.08 points (0.14%) to 75,889.78

Market expert S. Chouhan (Kotak Securities) noted that Nifty and Sensex found support at 22,725/75,300 levels and suggested that if the indices remain above 22,800/75,500, a short-term pullback could push markets higher.

Pre-Open Session Sees Flat Trading

During the pre-open session, markets traded flat, with:

•Nifty 50 at 22,963.65 (+0.01%)

•Sensex at 76,087.00 (+0.12%)

Currency and Commodity Markets

Rupee Weakens Against the US Dollar

The Indian rupee depreciated by 5 paise, opening at ₹86.93 per USD, compared to its previous close of ₹86.88.

Gold Prices Steady at ₹85,250

Gold is all time high

Gold prices in India remained stable at ₹85,250 per 10 grams, reflecting a ₹1,200 drop since February 10.

Crude Oil Prices Give Up Early Gains

Brent crude oil was trading 0.15% lower at $75.11 per barrel, reversing early gains amid uncertainty over OPEC+ production decisions.

Global Market Trends

Asian Markets Await RBA Interest Rate Decision

Most Asian stock markets traded higher on Tuesday, with investors awaiting the Reserve Bank of Australia’s (RBA) rate decision.

• Nikkei 225 gained 0.34%

• KOSPI rose 0.13%

• S&P ASX 200 declined 0.45%

GIFT Nifty Trades Near 23,000

The GIFT Nifty hovered near 23,000, signaling a positive start for Indian markets. Stocks like Paytm, Uno Minda, and Zomato were in focus due to recent corporate developments.

Market Outlook

The Indian stock market is facing mixed signals, with declines in key stocks like ICICI Bank, M&M, RIL, and SBI weighing on the indices. However, positive earnings reports from ABB India and Tech Mahindra provided some relief to investors.

Market sentiment remains cautious, as investors keep an eye on global economic trends, domestic corporate developments, and foreign investor activity.

Stay tuned to Harkhabar247 for more live updates on the Indian stock market