Indian equity markets ended another trading session with little movement, as investors remained cautious amid growing uncertainties, including fresh tariff announcements from U.S. President Donald Trump. The market sentiment remained lackluster, with cautious investors refraining from making significant moves, resulting in a narrow trading range for the benchmark indices.
On February 27, the Nifty 50 and Sensex both closed with minor fluctuations. The Nifty 50 slipped by 0.01%, ending the day at 22,545, while the Sensex gained a marginal 0.01%, closing at 74,612. Despite support from the financial sector, sharp declines in real estate and automobile stocks contributed to a subdued market performance. The broader market fared worse, with the Nifty Midcap 100 index dropping 1.14%, while the Nifty Smallcap 100 index plunged 1.64%, reflecting ongoing selling pressure in smaller stocks.
Investor sentiment remains muted, driven by global uncertainties such as President Trump’s recent tariff announcements. The U.S. President threatened to impose a 25% tariff on imports from the European Union, escalating trade tensions. Trump’s rhetoric, claiming that the EU was formed to “screw” the U.S., has left many investors uneasy, particularly in the face of a looming slowdown in global economic growth.
In addition to the impact of global factors, domestic market conditions are further weighed down by weak corporate earnings and a cyclical slowdown in GDP growth. These factors, coupled with significant selling from foreign institutional investors (FIIs), have led to a sharp decline in market confidence. For FY25, FIIs have sold stocks worth ₹3,87,976 crores, while domestic institutional investors (DIIs) have stepped in to absorb the selling by purchasing ₹5,55,519 crores worth of stocks. However, despite DIIs’ buying activity, the market has continued to trend downward.
Experts suggest that high-net-worth individuals (HNIs) and family offices may also be contributing to the selling pressure, as these investors tend to act based on fundamental market conditions, which have been deteriorating.
Overall, the market continues to face strong headwinds, as investors await more clarity on both domestic and global economic fronts.
