Fri Feb 28 07:20:00 UTC 2025: ## Indian Stock Market Crashes on Friday Amidst Selling Frenzy

**MUMBAI, INDIA** – A wave of intense selling pressure crashed the Indian stock market on Friday, sending key indices plummeting. The Nifty 50 index opened down at 22,433, hitting an intraday low of 22,120, a loss of over 400 points. The BSE Sensex fared even worse, opening at 74,201 and diving to an intraday low of 73,173, a drop of approximately 1,400 points. The Bank Nifty also suffered significantly, falling from its opening of 48,437 to an intraday low of 48,078, representing a 1.30% decline.

The sell-off was widespread, affecting all sectors, with IT, tech, auto, and telecom bearing the brunt of the losses. The broader market experienced even steeper declines than the major indices, with the BSE Small-cap index crashing over 3.40% and the BSE Mid-cap index losing nearly 3%. Several stocks, including Patanjali Foods and Granules India, experienced significant losses. While some stocks like KEI Industries and Coal India bucked the trend, the overall picture painted a grim market. By 1 PM, 81 BSE-listed stocks had hit their upper circuit breakers, while 460 were locked in lower circuit breakers. A stark contrast was seen with 46 stocks reaching 52-week highs and 817 hitting 52-week lows.

Market experts attributed the crash to several factors:

* **Weak Bank Earnings:** Concerns over disappointing Q4 earnings from Indian banks, following a weak Q3, triggered significant selling, especially considering the banking sector’s substantial weight in the Nifty 50.
* **DIIs Stuck at Higher Levels:** Domestic Institutional Investors (DIIs) are hesitant to counteract the selling pressure from Foreign Institutional Investors (FIIs) due to their own high positions.
* **MSCI Rejig:** The upcoming MSCI index rejig is creating uncertainty and prompting rebalancing of portfolios.
* **Rising US Bond Yields:** Attractive returns in the US bond market are encouraging FIIs to shift funds away from India.
* **FII Shift to China:** The recent positive performance of the Chinese market, fueled by economic stimulus, is drawing significant FII investment away from India.

Analysts project immediate support levels for the Nifty 50 around 22,200 and the Sensex at 73,000. Breaking below these levels could trigger further declines. Bank Nifty’s crucial support sits at 47,800.

**Disclaimer:** This news report presents analysis from various market experts. Investors are advised to consult with certified financial professionals before making any investment decisions.

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