Stock Market: Sensex-Nifty fell 4% in February, what will happen next...

Stock Market: February has been very painful for the Indian stock market. This month the Sensex and Nifty indexes have fallen by 4 percent. In such a situation, investors expecting a rise have been disappointed. Sensex has fallen by more than 2500 points and Nifty by about 1000 points during this month. Stock experts believe that valuation is becoming very attractive. They said that the decline looks limited right now, but instability may persist in the future due to weak global signals.

     Also Read: Instagram Users Saw Violent Content Due to Meta ’s Error – Now Fixed RBI's move to reduce the risk weightage for NBFCs, and small lenders is a big positive sign. Also, the reform has reduced the value weight, and the value weight of Nifty is looking attractive below 22,500.

What are the biggest concerns of the market

On Thursday, the Sensex was trading 10 points or 0.01 percent higher at 74,612. The Nifty was down 2.5 points or 01 percent at 22,545. PL Capital said that the market may remain volatile in the near term but will stabilize by the end of the December quarter of 2025. The biggest concern of the market - FPI inflows may be positive due to higher capital expenditure, tax cuts and improvement in consumer demand.

There may be a big change in FPI inflow

PL Capital said that the hurdle rate for FII investment in India has become 10.5 percent. At the same time, FII outflow peaks within 4 to 9 months. PL Capital says that India's growth during FY 2026 will be much better than the current financial year. The report says that there will be a positive change in FPI inflow, as the tax cuts in the budget and the increase in consumer demand due to monsoon have started showing.

      Also Read: What is weighing down stock market, key factors behind the decline Incred Equities said that the continued correction from the mid-September 2024 peak brought the Nifty's value2vation below the 10-year average level of 20 times one-year forward EPS.