Sensex tanks over 1,300 points today. Should you be worried?

The Indian stock market has hit a rough patch in recent weeks. The BSE Sensex slid over 1,300 points as of 2 pm IST on Friday, February 28, 2025. The index has tumbled nearly 14 per cent from its all-time high, while the Nifty Midcap 150 and Smallcap 250 indices have slipped into bear territory, falling over 20 per cent from their peaks. For investors accustomed to steady gains, this sharp downturn raises pressing questions: What's causing the sell-off, and how should long-term investors navigate these turbulent times? Let's take a closer look. On a slippery slope Tracking the tumble across indices Index YTD 1 week 1 month 3 months 1 year BSE Sensex -5.9 -2.9 -4.2 -7.8 1.6 BSE Mid Cap -17.2 -5.9 -9.3 -16.5 -1.5 BSE Small Cap -21.8 -6.9 -12.7 -22.4 -4.8 BSE 100 -7.9