Today, on 28 February, the Sensex closed down 1414 points (1.90%) at 73,198. Nifty also closed down 420 points (1.86%) at 22,124. Since October 2024, Nifty has closed in decline every month. It has fallen 12% in 5 months. This is the first time since 1996 that the market has declined for five consecutive months. Earlier in 1996, the market had declined for 5 consecutive months between July and November. During these 5 months, the Nifty 50 index fell 26%. 1. How much has the wealth of investors decreased in the last 5 months? On 30 September 2024, the market cap of companies listed on the Bombay Stock Exchange i.e. BSE was Rs 474 lakh crore, which came down to Rs 384 lakh crore on 28 February. That is, in 5 months, the wealth of investors has decreased by Rs 90 lakh crore. 2. What are the reasons for the continuous decline in the stock market? 3. What should investors do in this decline? Devina Mehra, MD of asset management firm First Global, says – Academic studies conducted from America to Europe show that whenever people are nervous or worried about investing in the market, the market has given more than average returns. That is, whenever you think that you should sell the shares, stop SIP and get out of the market, that time is the best time to invest in the market. Let us understand this with two examples: That is, whenever there has been a decline in the market, it has also seen rapid recovery. In such a situation, investors who are already invested should remain in their investment. On the other hand, those who want to make a new investment can invest little by little. 4. Has there been a decline in the global market as well? 5. For how many months in history has the Indian market fallen continuously? The Nifty 50 index was launched in July 1990. Data shows that Nifty 50 recorded its worst monthly performance in 1995. Then, Nifty fell for eight consecutive months from September 1995 to April 1996. During this period, a decline of more than 31% was recorded.
