Indian Markets Plummet as U.S. Growth Concerns Emerge

BENGALURU, India — India’s benchmark stock indexes fell for the fifth consecutive session on February 24, with concerns over slowing U.S. economic growth pushing markets to eight-month lows.

The Nifty 50 Index dropped 1.06% to close at 22,553.35, while the BSE Sensex fell 1.14% to 74,454.41. Both indexes reflected a continued downward trend amid persistent foreign selling and uncertainty regarding U.S. tariff policies, leading domestic investors to react with caution.

This downturn follows a particularly challenging month for Indian equities, which have seen substantial pressure due to foreign outflows. The Nifty 50 has now fallen in 15 of its last 17 trading sessions, losing over 4% overall.

Friday’s data revealed slower business activity in the U.S. for February, which raised alarms for emerging markets like India, where many companies depend heavily on U.S. clients for revenue. Reports indicate that around 75% of the Nifty 500 stocks declined in this trading session.

Analysts noted significant weaknesses in major sectors, particularly financials and information technology (IT), which fell 0.8% and 2.7%, respectively. These declines are attributed to a heightened sell-off by foreign portfolio investors (FPIs), which hold large positions in these sectors. The two indexes accounted for nearly two-thirds of the total Nifty 50 losses.

“China is getting a lot of attention due to attractive valuations and the excitement around their tech sector,” said Anand Vardarajan, business head at Tata Asset Management, highlighting the competition Indian markets face from foreign investments.

Broader indices also experienced declines, with mid-cap and small-cap indexes down 0.9% and 1%. On a year-to-date basis, these indexes are down 18% and 21% from their record highs, reflecting concerns over higher valuations and disappointing earnings reports.

Despite the overall slump, some sectors saw gains, including auto stocks, which increased by 0.2% following previous week declines linked to tariff fears. Additionally, Glenmark Pharma shares rose 1.8% after the company reached settlements in antitrust and consumer protection lawsuits concerning a generic cholesterol medication.

The volatility in the market emphasizes the delicate balance investors must maintain amid fast-changing global economic conditions.