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Midcaps continued to underperform, with the Nifty Midcap 100 index sliding 1% and nearly 20 of its stocks hitting 52-week lows.
Sensex Today
Sensex Today: The Indian stock market ended mixed on Thursday, February 27, with the Sensex rising by 10 points to close at 74,612, while the Nifty slipped by 2 points to settle at 22,545. Both indices have now experienced their longest losing streak in 29 years, marking five consecutive series of declines.
During this period, the Nifty has dropped over 14 per cent, including a 4 per cent decline in the February series. Midcaps continued to underperform, with the Nifty Midcap 100 index falling by 1 per cent, and nearly 20 of its stocks hitting 52-week lows.
Among Nifty stocks, Tata Motors, SBI, and Hero MotoCorp touched 52-week lows, and nearly 20 stocks from the Nifty Midcap 100 index also reached new 52-week lows.
Sector-wise, the RBI’s decision to roll back the hike in risk weights buoyed NBFCs and select banks, with AU Small Finance Bank, RBL Bank, L&T Finance, Shriram Finance, and Chola Finance rising by 3-6 per cent. On the other hand, UltraTech Cement’s announcement to enter the cables and wires business weighed on stocks in the sector, with Polycab, Finolex Cables, KEI Industries, and Havells falling by as much as 21 per cent.
SRF gained 3 per cent following a positive demand outlook in an analyst meeting, while Prestige Estates dropped 5 per cent after reports of a tax department search. Auto stocks ended largely in the red ahead of the monthly sales data, dragging the sectoral index down by 2 per cent. Despite the overall weakness, select midcaps like GNFC, PVR, Varun Beverages, IEX, Bata, and Amara Raja saw gains, finishing among the top performers.
Rupak De, senior technical analyst, LKP Securities, said: “Nifty remained range-bound during the day before closing flat. Sellers continued to dominate the market at higher levels. On the lower end, 22,500 continue to act as support, similar to how 22,800 did a few days ago. We expect Nifty to decline towards 22,200 and lower if it falls below 22,500. On the higher end, 22,650 might act as immediate resistance. In the short term, the index is likely to remain a “sell on rise” as long as it stays below the 22,750-22,800 range.”
FPIs Sell Over Rs 3.10 Lakh Crore as Indian Markets Struggle
The prolonged downturn in Indian markets has been largely driven by relentless selling from foreign portfolio investors (FPIs), who have been net sellers since October 2024. Over the past five months (October 2024 to February 2025), FPIs have pulled out a staggering Rs 3.11 lakh crore from Indian exchanges, placing the burden of absorbing this selling pressure squarely on domestic investors.
This shift in sentiment followed disappointing earnings results from Indian companies for the September and December quarters, which failed to justify the premium valuations many stocks had been holding. Meanwhile, expectations of a recovery in the Chinese economy, buoyed by stimulus measures from Beijing, led investors to shift focus to Chinese equities, which appeared more attractive compared to their Indian counterparts.
Adding to the unease, US trade policies under Donald Trump have further unsettled investors, with concerns that his trade measures could push up global prices and impact the broader economy. The US Federal Reserve has also responded to these concerns, halting its rate-cut cycle in January.
More Volatility Ahead?
India’s equity market, which previously weathered global uncertainty post-COVID-19, is now facing a significant shift in investor sentiment. After years of strong growth, investors are increasingly cautious and concerned about both domestic and global challenges.
As a result, brokerage firms are lowering their target multiples for the Nifty 50. InCred Equities has revised its blended Nifty 50 target to 22,850 by March 2026, suggesting a modest 2% upside from current levels. In a worst-case scenario, the firm predicts an 8% downside. Similarly, Prabhudas Lilladher has lowered its base-case Nifty 50 target to 25,689 from 27,172, expecting extended volatility in the near term. Its bear-case target is 24,337, while the bull-case stands at 27,041.
According to Motilal Oswal Financial Services (MOSL), India’s corporate sector is bracing for a cautious but strategic 2025, as macroeconomic headwinds, slowing earnings growth, and global uncertainties weigh on market sentiment.
Global Cues
Asian equities opened within a narrow range as investor sentiment remained cautious following mixed signals from global markets. Earnings reports from Nvidia Corp. failed to propel the stock higher in after-market trading, dampening overall market sentiment. Additionally, new tariff announcements by President Donald Trump introduced fresh uncertainty, further weighing on investor confidence. As of 9:08 a.m. Tokyo time, S&P 500 futures were little changed, while regional indices showed varied movements. Hang Seng futures dropped by 0.5%, Japan’s Topix saw a modest gain of 0.1%, and Australia’s S&P/ASX 200 rose by 0.6%. Meanwhile, Euro Stoxx 50 futures advanced 1.5%, reflecting a more positive outlook for European markets.
