Nifty Capital Markets Index Declines Amidst Weak Profits and Foreign Outflows

The market faces eight-month lows due to weak profits, foreign outflows, and investor caution.

Amid a general market decline, retail investors became cautious, and capital market equities, such as BSE, Motilal Oswal, and MCX, continued to decline on Feb 27th, 2025. At 3,223.55, the Nifty Capital Markets index fell 3.6 percent, increasing its weekly loss to more than 5 percent.

Both major indices have fallen to their lowest points in eight months as the benchmark Nifty50 is headed for a five month loss skid, the longest since 1996. The market has fallen precipitously from record highs just four months ago due to a combination of weak corporate profits, ongoing foreign outflows, and uncertainty about the state of the world economy. Angel One's stock fell 3.3 percent to Rs 2,140, making its four-day losing run at 9.78 percent overall. Central Depository Services Limited (CDSL) dropped more than 2 percent to Rs 1,173 a share, while the Bombay Stock Exchange (BSE) dropped 6.36 percent to Rs 5,151.70 per share.

Other financial stocks were also subject to selling pressure. KFin Technologies and Motilal Oswal Financial Services fell 3 to 5%, while MCX fell 2.5 percent. Additionally, shares of Aditya Birla Sun Life AMC, HDFC AMC, and CAMS saw negative trading, falling 1.5%, 3%, and 2%, respectively.

Foreign institutional investors (FIIs) have sold stocks in the cash market for a total of Rs 3,87,976 crore so far in FY25. Interestingly, domestic institutional investors (DIIs) have picked up Rs 5,55,519 crore worth of stocks to make up for this. Despite this, market trust remains low, according to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. Despite this, market trust remains low, according to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.