Stock Market Today: Sensex, Nifty Extend Losses Amid Financial Sector Weakness
Cipla, BEL, NTPC, Hindalco, and Shriram Finance were among the top gainers on the Nifty 50. On the other hand, HUL, M&M, ITC, Maruti, and HDFC Bank were the biggest losers
India's benchmark indices, Sensex and Nifty, ended slightly lower for the third consecutive session on Thursday, with financial stocks leading the decline as global trade tensions weighed on investor sentiment. Concerns over sluggish earnings growth, elevated valuations, and uncertainty surrounding US trade policies contributed to the sell-off.
At the close, the Sensex dropped 222 points, or 0.3 per cent, to 75,716, while the Nifty slipped 26 points, or 0.1 per cent, to 22,906. On the NSE, 1,861 stocks advanced, while 727 declined. So far in 2025, Indian equities have lost over 3 per cent, and they are down nearly 13 per cent from their record highs in late September.
Cipla, BEL, NTPC, Hindalco, and Shriram Finance were among the top gainers on the Nifty 50. On the other hand, HUL, M&M, ITC, Maruti, and HDFC Bank were the biggest losers.
The session began in the red, reflecting weakness across Asian markets, as investors anticipated the inflationary impact of new US tariff measures. On February 19, former President Trump announced plans to impose tariffs of 25 per cent or more on auto, pharmaceutical, and semiconductor imports. While South Korea and Japan face the most exposure in auto exports, India's substantial pharmaceutical trade with the US may also face challenges.
Meanwhile, minutes from the US Federal Reserve's January policy meeting highlighted concerns that Trump's proposed tariffs could drive inflation, increasing the likelihood of interest rates remaining elevated for an extended period. Historically, higher US rates reduce the appeal of emerging markets like India, leading to capital outflows. In February alone, foreign institutional investors (FIIs) have sold off Rs 30,216 crore worth of Indian equities, while domestic institutional investors (DIIs) have purchased Rs 35,809 crore.
Sectorial Update
Mid and small-cap stocks outperformed the benchmark indices, with the BSE Midcap and BSE Smallcap indices each rising by more than 1 per cent. However, despite the recovery, both indices are still significantly below their record highs, with mid-caps down 17 per cent and small-caps off by 21 per cent from their all-time peaks.
Sectoral performance was mixed, with financial stocks leading the declines. Both Nifty Bank and Nifty Private Bank dropped by more than half a per cent. On the other hand, stocks in oil & gas, auto, metal, realty, and PSU Bank sectors saw strong gains, rising by over 1 per cent each.
The Nifty FMCG index extended its record-breaking losing streak to 14 sessions, erasing Rs 2.7 lakh crore in investor wealth.
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