Would you be sure that India’s stock market has fallen so much in 2025 that it has left Zimbabwe and Iceland behind? Yes! The market cap of the Indian stock market has come down to 4 million million dollars at this time, and this is the lowest level of the last 14 months. The clear effect of withdrawing money from foreign investors’ market is being seen. After all, why is this decline in the stock market? How is the Indian stock market performance in the rest of the countries? Let us understand it in detail.
Bloomberg has taken out a report on stock markets around the world, whose figures are shocking. The report said that India has been the worst performance in the stock markets around the world so far in the year 2025, which is the fifth largest market in the world. India’s market cap has fallen by 18.33 per cent this year. According to Bloomberg data, Zimbabwe is at number two. There has been a decline of 18.3 percent. While Iceland is in third place with a decline of 18 per cent.
In comparison, the world’s largest stock market has increased by 3 per cent of America’s market cap so far this year. At the same time, the market cap of China and Japan also saw an increase of 2.2 percent. The biggest faster was seen in France, where the market cap has increased by 9.9 per cent this year.
Why is there such a decline in the stock market?
Since the beginning of 2025, the Sensex and Nifty have come down by about 2.6% so far. At the same time, BSE midcap and smallcap index have dropped up to 12% and 15%. The total market cap of Indian markets is now $ 3.99 trillion, the lowest since December 4, 2023. At that time India’s market cap was $ 5.14 trillion. Since then, it has fallen by more than 1 trillion dollars.
There are many types of concerns in front of the stock market at this time. The Indian rupee has weakened 1.5% so far this year. This is the second worst performing currency in Asia after Indonesia. Apart from this, foreign investors have withdrawn more than Rs 1 lakh crore so far this year. US President Donald Trump is also threatening to increase trading tension with his tariff policies, causing a danger of starting global trade war. Apart from this, the elevated valuation of Indian shares also remains a matter of concern for market experts. Aswath Damodaran, who is called Valuction Guru, recently described India as the most expensive market in the world.
What should investors do next?
ICICI Prudential AMC Chief Investment Officer S. Naren and Valuation Guru Ashwath Damodaran say that investors are especially highly elevated by investors and investors should stay away from them. He has advised investors to focus on low -valuation bluechip stocks. He said that despite the recent decline in the market, India’s long term outlook is strong. Foreign investors may return to the market after stability in Indian currency. The upcoming quarterly results of Indian companies will also play an important role in deciding the market moves.
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