Nifty Crashes: Worst Monthly Performance since 1996

The Nifty 50 index is on track for its worst monthly losing streak in 28 years. Weak earnings, foreign outflows, and economic uncertainties have hit investor confidence. Nifty 50 and Sensex fell around 4% in February, extending losses to 13.8% and 12.98% from their September 2024 peak.

Foreign investors sold over ₹2 lakh crore worth of stocks since October 2024 due to a weakening rupee and China’s recovery. This caused a shift in investor flows from India to China. The Hang Seng Index jumped 18.7% in a month, while India’s market cap shrunk by $1 trillion.

Analysts predict further corrections for the Nifty 50, possibly dropping to 22,500-22,400. They advise a stock-picking strategy and investing in quality stocks gradually. Despite the downturn, some believe India can still outperform if global tariff risks resurface.