Back To The 90s? Nifty 50 Logs Longest Losing Streak In Nearly Three Decades

India's equity benchmark index, the Nifty 50, has recorded its longest losing streak in almost three decades, finishing February with its fifth straight monthly loss. The last time the benchmark index fell for five consecutive months was in 1996, from July to November when it crashed nearly 26 per cent.

Prior to that, the biggest losing streak the Nifty 50 has ever registered was in 1994-95, from September to April, where it fell 31.4 per cent over eight straight months.

This time around, however, the downturn has so far been relatively milder, with the Nifty shedding 15.8 per cent from its record high.

Rs 95 Lakh Crore Wiped Out In Five Months

Nifty 50 recorded its all-time high of 26,277.35 on September 27, 2024. Since then, the index has been consistently falling amid a complex mix of global and domestic cues.

This brutal sell-off across the broader market has erased nearly Rs 95 lakh crore of investors' wealth.

In Friday's trade alone, the combined market cap of all BSE-listed companies plunged by Rs 9.78 lakh crore, shrinking to Rs 384.01 lakh crore.

Why Is The Market Falling?

The ongoing sell-off has come amid a complex mix of domestic and international factors.

Weaker-than-expected Q3 numbers, uncertainty around US President Trump’s global trade policies, a depreciating rupee, rising bond yields, and concerns over higher valuations of Indian equities have led to a broad-based sell-off in the market.

VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, "Stock markets dislike uncertainty, and uncertainty has been on the rise ever since Trump was elected the US President. The spate of tariff announcements by Trump has been impacting markets and the latest announcement of additional 10 per cent tariff on China is a confirmation of the market view that Trump will use the initial months of his presidency to threaten countries with tariffs and then negotiate for a settlement favourable to the US. How China responds to the latest round of tariffs remains to be seen.”

According to Vijayakumar, the markets havse still not discounted a full blown trade war between the US and China.

According to Rupak De, Senior Technical Analyst at LKP Securities, the downtrend in Nifty intensified on Friday following a breakdown in consolidation on the daily chart. “The index remains in a strong bearish grip, having failed to stage a meaningful bounce in the last several days.”

FIIs Sell More Than Rs 3 Lakh Crore

Amid these macro trends, foreign institutional investors (FIIs) have been on a selling spree. FIIs have so far sold equities worth Rs 3.12 lakh crore over these past five months, according to NSDL data. In 2025 alone, Rs 1.34 lakh crore was dumped.

Meanwhile, the domestic institutional investors (DIIs) have simultaneously been absorbing all the FII selling, having bought over Rs 3.25 lakh crore in the same period.

Speaking about valuations, Pratik Gupta, CEO & Co-Head, Kotak Institutional Equities, said, “We believe the Nifty 50 is still somewhat expensive trading at nearly 19 times the price-to-earnings ratio for March 2026, which is significantly higher than historical averages and still at about a 90 per cent premium to the MSCI Emerging Markets Index. This is especially high considering earnings compounded annual growth rate (CAGR) of 14 per cent in FY26 and FY27, with downside risks to such estimates.”

Stock Market Today, February 28

The index, on the last session of the month, crashed 420.35 points, or 1.86 per cent, to end at 22,124.70. Similarly, the BSE Sensex also keeled over 1,414.33 points, or 1.90 per cent, to finish the month at 73,198.10.

On the sectoral front, all indices ended in the red with deep cuts. The Nifty Bank index fell by 399.10 points, or 0.82 per cent, ending at 48,344.70, just some 2,500 points shy of its 52-week low.

The Nifty IT index saw a sharp decline of over 4 per cent to emerge as the biggest loser, dragged mainly by heavyweights Infosys and Tata Consultancy Services (TCS). The carnage in IT stocks came amid concerns over a slowing US economy and rising inflation expectations, largely due to Trump’s tariffs. The surprise jump in US weekly jobless claims also fueled worries about a weakening economy.

The Nifty Auto and Nifty Media indices both fell by more than 3 per cent, while FMCG, PSU Bank, Healthcare, Consumer Durables, and Oil & Gas sectors also ended between 2-3 per cent.

According to Vinod Nair, Head of Research, Geojit Financial Services, the decline was largely triggered by fear of the implementation of a 25 per cent tariff on the US imports from Canada and Mexico, set to take effect next week, along with an additional 10 per cent tariff on Chinese goods. Adding to market jitters, Nair said, "The potential imposition of tariffs on the European Union has further fuelled uncertainty."

“As investors navigate this volatility, all eyes are on the domestic Q3 GDP data, which could provide vital insights into the economic recovery trajectory and influence market direction," he added.