Nifty Records Worst Monthly Losing Streak Since 1996: Indian Stock Market Crash Wipes Out Rs 90 Lakh Crore

The Indian stock market has experienced unprecedented turbulence as the Nifty 50 index recorded its longest monthly losing streak in nearly three decades. For six consecutive months, the benchmark index has posted losses, marking the worst performance since 1996 and erasing over Rs 90 lakh crore in investor wealth.

The prolonged market downturn has been primarily fueled by massive foreign institutional investor (FII) outflows. Foreign investors have withdrawn over Rs 45,000 crore from Indian equities in recent months, concerned about elevated valuations and global economic uncertainties. Domestic investors have been unable to absorb this selling pressure, leading to the sustained decline.

The IT, banking, and real estate sectors have borne the brunt of the market correction. Tech stocks, once market darlings, have plummeted over 25% from their peak as global IT spending contracts. Banking stocks have declined amid concerns about asset quality and slower credit growth. The real estate sector, already struggling with high inventory, has seen developers' share prices drop by 30-40%.

Market experts recommend a cautious approach during this volatile period. "Investors should focus on quality companies with strong balance sheets and proven business models," advises a prominent market analyst. Rather than exiting entirely, a staggered investment approach through systematic investment plans (SIPs) may help average costs during this market downturn.

The broader economic impact of this market crash remains a concern. The wealth erosion could affect consumer sentiment and spending. However, India's strong economic fundamentals, including robust GDP growth projections of 6.5-7%, suggest the market may eventually find a bottom. Technical analysts point to key support levels on the Nifty that could trigger a potential recovery.

As market participants navigate these challenging times, maintaining a long-term investment horizon remains crucial for weathering this historic stock market correction.