Indian Stock Market Under Pressure

Key Figures:

• ₹7,536 crore: Value of Indian stocks sold by FIIs on Friday
• ₹12,293 crore: Value of shares bought by DIIs in the last session of February
• ₹6,640 crore: Net sales by FIIs in February
• 2.50%: Interest rate hike by the Bank of Japan
• 17 years: Gap since the Bank of Japan last raised interest rates
• $38 trillion: US national debt
• $1 trillion: Interest paid by the US on its debt every year
• 70%: Household debt as a percentage of India's GDP
• 50%: Expected decline in earnings per share

Market Analysis

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The Indian stock market continues to face selling pressure from FIIs, who sold Indian stocks worth ₹7,536 crore on Friday. Despite DIIs buying shares worth ₹12,293 crore in the last session of February, the trend has not changed. FIIs have been net sellers for eight consecutive months, since July 2025.

The Bank of Japan's decision to raise interest rates to 2.50% is expected to worsen the situation. The move is expected to create demand for Japanese treasury bonds, leading to a weaker US dollar and higher US inflation. This, in turn, may put pressure on the US stock market and the Indian market.

Global Economic Outlook

Experts predict that the US economy is on the verge of another recession, which may turn into a depression in the next two years. The Indian economy and stock market are not expected to remain insulated from this crisis. The Nifty 50 index may reach 15,000 by the end of 2027.

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Investment Advice

Experts advise investors to look at safe-haven assets, such as long-term government bonds, in the upcoming two years. It is recommended to accumulate these bonds before the end of the current financial year and hold them for the next two years, until the global slowdown subsides.