The Indian stock market experienced a period of weakness in the March quarter of 2025, which significantly impacted the portfolios of some of the country's wealthiest investors. Prominent investors like Rekha Jhunjhunwala and Mukul Agrawal saw considerable declines in their portfolio values, ranging from 5% to 31%. In contrast, the portfolios of Madhusudan Kela and Ashish Dhawan remained relatively stable during this period.
Several factors contributed to this downturn. Negative global cues and geopolitical tensions created an environment of investor caution, leading to a decline in the stock market. For example, concerns over trade and tariff policies, particularly those related to the United States, played a role in dampening market sentiment.
The performance of key indices reflected the overall market weakness. The Sensex, which stood at 79,943.71 on January 2, 2025, fell to 74,029.76 by March 12, 2025, indicating a 7.4% decline. Similarly, the Nifty experienced a 7.10% drop during the same period, decreasing from 24,188.65 to 22,470.50.
The decline in the stock market led to substantial losses for several of India's wealthiest individuals. According to the Bloomberg Billionaires Index, seven of the richest Indians collectively lost $34 billion year-to-date as of March 12, 2025. Gautam Adani experienced the most significant wealth erosion, with a loss of $10.1 billion. Other notable losses were incurred by Shiv Nadar ($7.13 billion), Shapoor Mistry ($4.52 billion), and Dilip Shanghvi ($4.21 billion). Even Mukesh Ambani, the richest man in India as of March 12, 2025, saw his wealth decrease by $3.13 billion.
Not all wealthy investors experienced losses during this period. Lakshmi Mittal of ArcelorMittal saw his wealth increase by $3.13 billion, and Sunil Mittal of Bharti Enterprises added $917 million to his wealth. These gains suggest that strategic investments in specific sectors, such as commodities and media & telecom, may have provided a buffer against the overall market downturn.
The challenging market conditions in the March quarter also affected portfolio management companies. Wealth First Portfolio Managers reported a consolidated net loss of Rs 4.29 crore for the quarter ended March 2025, compared to a net profit of Rs 13.87 crore in the corresponding quarter of the previous year. The company's sales also declined, reporting a negative Rs -3.26 crore in the March 2025 quarter against Rs 14.59 crore in the March 2024 quarter. For the full year, Wealth First Portfolio Managers' net profit decreased by 19.99% to Rs 34.15 crore, and sales fell by 2.15% to Rs 53.16 crore.
The data from the March quarter of 2025 indicates a challenging time for many of India's wealthiest investors and portfolio management firms. Market volatility, influenced by global factors and geopolitical tensions, led to significant portfolio losses for some, while others managed to navigate the conditions more effectively.
