The selling of foreign investors remains a decline in the market. In terms of decline in shares, January 2025 seems to prove to be the worst month till date. During this period, the price of 2,461 has declined from the shares listed on the Bombay Stock Exchange. It has also surpassed the decline period in March 2024, when 2,334 shares were in loss. This month, the ratio of shares in profit and loss was 0.82, which is slight up from 0.81 in February 2023. The ratio of shares in profit and loss during March 2020 was 0.72 due to Kovid epidemic. The number of declining shares in January 2025 is more than 2,043 more than 2,043 falling shares in the last two years.
In broad way, the BSE 500 index has fallen 6.5 per cent this month and its performance may be the worst after March 2020. The index declined by 24 per cent in March 2020. The widespread decline in the market indicates that small investors have weakened the encouragement. Generally, shares of companies from the top 500 accelerate with retail investors. UR Bhatt, co-founder and director of Alphaniti Fintech, said, “The recent sharp decline in the market has shocked retail investors, which has increased the selling. Recent data shows that along with foreign investors, retail investors are also selling big.
The market capitalization of listed companies on BSE has come down by Rs 33 lakh crore to Rs 409 lakh crore. In March 2020, market capitalization was the highest by Rs 33.4 lakh crore.
Foreign portfolio investors have sold Rs 71,000 crore this month. This is the second largest selling of foreign investors in a month after October 2024. In October 2024, he sold shares worth Rs 92,000 crore.
The stock market has increased selling this month due to increasing bond yields in the US and strengthening of the dollar. Along with this, the markets there are also doing well with the hope of cutting corporate tax in the US under the leadership of Donald Trump, which has faded the attraction of investment in expensive markets like India. The decline in the market has also been strengthened due to slower growth of companies on the domestic front.
Kunal Vora, head of India I Quality Research at BNP Pariba, said, “The income growth in FY 2025 is expected to be 4 to 5 percent in FY 2025 since the year 2021.”