Explainer: Why Indian stock market is witnessing correction
After Nifty surged 230% and Sensex 244% since March 2020, India's Sensex and Nifty have dropped about 6% from their September 2024 record highs.
It's a noticeable pause after years of wild growth.
What's causing the dip?
If you're into investing or just curious about the economy, this dip is tied to global worries: US tariff threats, nearly $28 billion in foreign investor money leaving, and some lackluster corporate results.
Even mid- and small-cap stocks took bigger hits—down over 9% and 8%.
Bright spots amid the gloom
Despite the drop, there's still hope. The recent GST cut and the RBI's anticipated interest rate cut aim to boost spending.
Plus, IPOs are still raising big money—₹10,675 crore so far this month!
Analysts expect future gains will be steadier (think: 12-15% returns), but with global uncertainty lingering, it pays to stay tuned.