Biggest Market Decline in 28 Years? Sensex Crashes, Nifty Dips, 5-Month Losing Streak Raises Fears of Recession

The Indian stock market has been witnessing a prolonged downturn, with Sensex and Nifty extending their losing streak for the fifth consecutive month. Every attempted support level has failed to hold, adding to the woes of traders. Stock market today is deep in the red, with the Nifty falling over 410 points to trade at 22,129, down by 1.89%, while the Sensex crashed by 1,276 points to 73,339, a decline of 1.71%.

This persistent downward trend has sparked fears of a recession, as several experts warn that the current scenario could be the biggest market downturn since 1996. The significant sell-off in NBFCs, mid-cap, and small-cap stocks has further dampened sentiment, putting additional pressure on an already fragile market.

Nifty and Sensex Hit New Lows, 5-Month Losing Streak Raises Recession Concerns

For the last five months, the Indian stock market has been struggling to find stability. The Sensex and Nifty’s consecutive monthly losses have alarmed investors, with some analysts fearing that the prolonged slump may signal a larger economic downturn.

The latest market crash comes on the back of multiple global uncertainties. US President Donald Trump’s new trade policies have caused fresh volatility in global markets. His announcement of increased tariffs on imports from Mexico, Canada, and China has triggered investor panic, further weakening global market sentiments.

On his Truth Social platform, Trump stated, “This was a necessary response to reject illegal drugs entering the US from these countries.” His aggressive stance on trade policies has only added fuel to the ongoing market turmoil.

Global Uncertainty Weighs Heavily on Indian Stock Market

The stock market today is struggling under the weight of global uncertainty, with weak international cues triggering a sharp decline in Sensex and Nifty. Market experts believe that rising geopolitical tensions, trade policy shifts, and economic instability in major economies have contributed to the continued downturn in the Indian stock market.

Market analysts are closely watching key support levels for the Nifty50 index, particularly in the 22,500–22,400 range. If this level is breached, the index may see a further sharp decline, increasing fears of a recession.

"The bearish gap of 22,670–22,720 remains a daunting task for the bulls. A decisive breakout above this level may provide a short-term breather, but sustained recovery remains uncertain," said Sameet Chavan, Head of Research, Technical and Derivative at Angel One.

Will the Indian Stock Market Rebound?

Moving forward, traders and investors must remain cautious as global economic developments continue to drive market movements. With the Nifty and Sensex facing strong selling pressure, market experts suggest avoiding aggressive bets until a clear reversal signal emerges.