Stock Market Today: Sensex Plummet 400 Points, Nifty Settles Below 22,800
Stock Market Today: The broader market reflected this weakness, with the BSE Midcap index falling over 1 per cent and the BSE Smallcap index down 0.4 per cent
Stock Market Today: Indian equity markets took a hit on February 21, with the Sensex and Nifty facing pressure from declines in auto and financial stocks. The sell-off was compounded by a sharp drop on Wall Street, concerns over potential disruptions from President Trump's proposed tariffs, persistent U.S. inflation, and the Federal Reserve's cautious outlook on rate cuts, all of which continued to unsettle investors.
At the close, the Sensex was down 424 points or 0.6 per cent at 75,311, while the Nifty fell 117 points or 0.5 per cent to 22,795. Advancing stocks numbered 1,625, while 2,169 stocks declined and 111 remained unchanged. Since their peak levels in September 2024, the Sensex has dropped by 12 per cent, and the Nifty has fallen by 13 per cent. Both indices ended the week in the red, with the Sensex losing nearly 1 per cent.
Among the Nifty 50, Adani Ports, BPCL, Tata Motors, Wipro, and M&M were the biggest laggards, with losses ranging from 2 to 6 per cent. On the flip side, HCLTech, Eicher Motors, L&T, Tata Steel, and Hindalco stood out, gaining 1-2 per cent despite the broader market decline.
Foreign institutional investors (FIIs) have sold off Indian equities worth Rs 33,527 crore so far this month, as growing interest in rebounding Chinese stocks has led to a shift in global investment allocations.
Broader Market
The broader market reflected this weakness, with the BSE Midcap index falling over 1 per cent and the BSE Smallcap index down 0.4 per cent. Midcap and smallcap stocks have now corrected by 16 per cent and 20 per cent, respectively, from their all-time highs, as concerns over high valuations and disappointing earnings mount among investors.
Sectorial Update
Sectoral indices painted a negative picture, with 12 out of 13 sectors trading in the red. The Nifty Metal index was the only one to buck the trend, rising over 1 per cent. The Nifty Auto index took a heavy hit, plummeting 2.5 per cent following reports that the government might reduce import duties on electric vehicles from 110 per cent to 15 per cent as part of a new EV policy, potentially paving the way for Tesla’s entry into India. This news led to significant losses for Mahindra & Mahindra, Tata Motors, and TVS Motors.
Financials and IT stocks also faced pressure, slipping nearly 1 per cent as ongoing foreign investor selling dampened market sentiment. Midcap IT stocks such as Coforge and Persistent Systems fell by 2-3 per cent after global peer Endava reduced its revenue growth forecast for FY25 to 8.5-9 per cent, down from the earlier projection of 10-11.5 per cent.
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