The Indian stock market faced a tough February 2025, registering its worst advance-decline (A/D) ratio in nearly five years, since March 2020. The A/D ratio for February stood at 0.70, marginally better than March 2020’s 0.69, which was impacted by the COVID-19 market crash.

Worst Advance-Decline Ratios in the Past 15 Years

  1. March 2020: 1139 advances vs 1657 declines (0.69)
  2. February 2025: 1841 advances vs 2617 declines (0.70)
  3. February 2025 (Alternate Calculation): 1841 advances vs 2617 declines (0.71)
  4. September 2018: 1287 advances vs 1753 declines (0.73)
  5. November 2011: 1271 advances vs 1710 declines (0.74)
  6. August 2011: 1279 advances vs 1720 declines (0.74)
  7. February 2013: 1323 advances vs 1718 declines (0.77)
  8. March 2013: 1370 advances vs 1681 declines (0.81)
  9. February 2023: 1744 advances vs 2158 declines (0.81)
  10. February 2022: 1712 advances vs 2052 declines (0.83)

Market Under Pressure

The A/D ratio is a key market breadth indicator, and February 2025’s reading highlights significant selling pressure, with more stocks declining than advancing. The weak ratio reflects broader market stress, similar to historical downturns seen in 2011, 2013, 2018, and 2020.

February 2025 now stands as the second worst month in the past 15 years, reinforcing bearish sentiment amid global and domestic market uncertainties. Investors will be closely watching March 2025 to assess if this trend continues or if a recovery follows.

Disclaimer: The information presented is for informational purposes only and does not constitute financial advice. Investors should conduct their own research before making any decisions.

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