The Indian stock market faced a sharp downturn on the last day of February, with benchmark indices Sensex and Nifty both witnessing steep declines. The bearish trend was primarily attributed to weak global cues, persistent Foreign Institutional Investor (FII) selling, and growing concerns over global trade policies that continue to weigh on investor sentiment.
Sensex and Nifty Suffer Heavy Losses
The Sensex, which tracks the 30 largest companies listed on the Bombay Stock Exchange (BSE), tumbled by nearly 1,000 points, slipping below the 73,700 mark. The index closed the day at a significant loss of 1.34%, reflecting the depth of the market’s pessimism. Meanwhile, the Nifty 50, which tracks the performance of 50 prominent stocks on the National Stock Exchange (NSE), saw a decline of 1.24%, ending below the 22,300 level.
The downturn was felt across the global markets, with a weaker-than-expected performance in the US and other major international markets fueling investor concerns. A surge in FII selling, particularly in the Indian market, also contributed to the negative momentum. Investors are growing increasingly cautious about the potential ramifications of global trade policies, including rising protectionist sentiments in major economies.
Sectoral Bloodbath: IT, Auto, Telecom Worst Hit
The sell-off was widespread, with all sectoral indices ending the day in the red. The IT, auto, media, and telecom sectors bore the brunt of the market’s decline, with stocks in these sectors falling between 2% and 3%. The BSE Midcap and Smallcap indices also recorded sharp losses of 2% each, reflecting the broad-based weakness in the market.
Tech stocks, which had previously been a strong performer, experienced a significant sell-off. In particular, HCL Technologies, Infosys, and TCS saw sharp declines, with HCL Tech losing 3.85% on the Sensex. The auto sector also suffered, with Maruti Suzuki experiencing a 3.48% drop, while Mahindra & Mahindra (M&M) saw a decline of 3.81%. Media and telecom companies also struggled, contributing to the overall downturn.
IndusInd Bank, Tech Mahindra Among the Biggest Losers
IndusInd Bank emerged as the largest loser on the Sensex, plummeting 4.44%. The bank’s shares continued their slide amid ongoing investor concerns about the financial sector. Following closely behind was Mahindra & Mahindra, which saw a 3.86% fall in its stock price, and HCL Technologies, down 3.85%.
Maruti Suzuki also faced a steep decline of 3.48%, reflecting the broader downturn in the auto sector. Other notable stocks that weighed on the Sensex included Tech Mahindra, Infosys, Bharti Airtel, Tata Motors, and Titan.
The Nifty 50 also saw its fair share of major decliners. Tech Mahindra led the losses on the Nifty, plunging by a staggering 5.01%. IndusInd Bank followed closely with a 4.46% drop, while Wipro and HCL Tech saw significant losses of 3.94% and 3.92%, respectively. Mahindra & Mahindra rounded out the top losers on the Nifty, losing 3.81%.
Broader Market Struggles: Most Stocks in the Red
The broader market presented a bleak picture, with only 289 out of the 2,702 stocks traded on the Nifty showing any positive movement. In stark contrast, 2,356 stocks ended the day in the red, marking a widespread sell-off. A total of 57 stocks remained unchanged.
The market’s weakness was further underscored by the fact that only five stocks touched their 52-week highs, while a staggering 617 stocks hit their 52-week lows, a clear indication of the broad-based selling pressure in the market.
As the month comes to a close, investors are left grappling with a volatile market environment. The combination of weak global signals, continued FII selling, and heightened concerns about the impact of global trade policies have created a challenging scenario for Indian equities. The coming days will likely bring further volatility, with investors awaiting clarity on the economic outlook and the direction of global markets.
