Will Nifty50 deliver negative returns this year?

Nifty50 has recorded its longest losing streak in 28 years in February 2025, marking its first five-month consecutive drop. Historically, NIFTY saw its longest losing streak of 31.4% during Sept’1994 to April’1995.

Indian Stock market has always been prone to macroeconomic changes. After 1995 fall, NIFTY delivered negative returns at the time when global markets were out of favour.

The macroeconomic factors affecting the market in the last 5 months are very well known to everyone (significant FPI selling, weak corporate earnings, global market sentiments like rising interest rate in US, rupee depreciation and high valuations). So now the dilemma is-

“Will NIFTY create the history of biggest losing streak, making the future market recovery slow or are we nearer to the end of the pain sighting that market corrections are temporary with strong long-term growth in NIFTY?”