New Delhi, March 5 -- The Indian stock market has witnessed a steep correction in CY25, with the benchmark Nifty declining over 5 per cent, while the Smallcap index has suffered a more significant hit, plunging by 20 per cent in this period. The correction has been attributed to a combination of factors, including sustained foreign capital outflows, weak corporate earnings, and the rupee hitting record lows against the dollar.

Adding to the turmoil, investor sentiment has been dampened by fresh tariffs imposed by U.S. President Donald Trump, stoking fears of a potential trade war that could slow global economic growth and push inflation higher. The heightened uncertainty has led to a shift in investment preferences, with investors moving...