Reasons behind today’s Market correction :

On February 28, 2025, the Indian stock market experienced a significant downturn, with the BSE and NSE dropping over 1.8%. This decline can be attributed to five key factors:

1. Global Economic Slowdown: Recent data indicates a deceleration in global economic growth, leading to reduced investor confidence and impacting markets worldwide.

2. Rising Inflation Rates: Inflation has been on the rise, eroding purchasing power and prompting concerns about future economic stability.

3. Geopolitical Tensions: Escalating geopolitical conflicts have created uncertainty, causing investors to adopt a risk-averse approach.

4. Corporate Earnings Disappointments: Several major companies have reported earnings below market expectations, leading to a reassessment of stock valuations.

5. Policy Changes: Recent government policy shifts have introduced uncertainty, affecting investor sentiment and market dynamics.

These combined factors have contributed to the market’s sharp decline, as investors react to the evolving economic and geopolitical landscape.