Synopsis
On February 21, the Indian stock market experienced a downturn, with the Nifty and Sensex recording losses due to weak global cues and widespread sector declines. The Nifty Auto sector was the worst performer, while investor concerns over US market conditions added to the negative sentiment.Key Takeaways
- Indian stock market closed lower on February 21.
- Nifty and Sensex extended their weekly losses.
- 12 of 13 major indices finished in the red.
- Concerns over US tariffs impacted investor sentiment.
- Rupee traded weak amid FII selling pressure.
Mumbai, Feb 21 (NationPress) The Indian stock market finished lower on Friday, with the Nifty and Sensex recording further declines for the week amid weak global cues and widespread weakness.
At the end of trading, the Sensex fell by 424.90 points, or 0.56 percent, closing at 75,311.06, while the Nifty dropped 117.25 points, or 0.51 percent, to finish at 22,795.90.
The Nifty Bank index ended at 48,981.20, down by 353.35 points or 0.72 percent.
In total, the Nifty has declined in 12 out of the last 13 trading sessions. Sector performance was poor, with 12 out of 13 major indices finishing in the red.
The NSE Nifty Auto sector was the worst performer, while the NSE Nifty Metal sector saw the most gains. The Nifty Auto index fell by 2.5 percent following news that the government might reduce import duties on electric vehicles.
Vikram Kasat from PL Capital-Prabhudas Lilladher noted that Indian equity benchmarks opened lower, reflecting the weakness observed in global markets.
Ongoing concerns about US retaliatory tariffs and continuous foreign selling have negatively impacted market sentiment. He added, "Overnight losses on Wall Street, driven by a rise in US jobless claims and a lackluster corporate outlook, added pressure.
Among the top gainers were Hindalco Industries, Tata Steel, and Eicher Motors, while Mahindra & Mahindra, ICICI Bank, and Bharat Petroleum were among the top losers.
Experts suggest that the domestic market continues to show broad-based weakness, largely due to investor concerns regarding the hawkish stance of the US Federal Open Market Committee (FOMC) minutes, indicating a prolonged period of high interest rates that could limit liquidity in emerging markets (EMs).
The rupee traded at 86.70, depreciating by 0.05 despite the dollar index dropping to 106.60, as foreign institutional investor (FII) selling persisted, exerting pressure on the currency.
Looking ahead, the rupee is projected to fluctuate within a range of 86.45-87.10, with global sentiment and capital flows playing pivotal roles in determining its direction, according to market analysts.
Meanwhile, gold prices remained weak and volatile, fluctuating between $2,920 and $2,935 on Comex. At MCX, gold prices varied between Rs 85,900 and Rs 85,400.
