Indian stock markets opened on a negative note on Friday, mirroring weak global cues, with significant selling pressure in auto, IT, PSU banks, and metal stocks during early trading hours.
Markets in Red: Key Indices Decline Sharply
At 9:34 a.m., the benchmark indices showed a sharp decline:
- BSE Sensex: Down 840.82 points (1.13%) at 73,771.61
- Nifty 50: Dropped 254.15 points (1.13%) to 22,290.90
- Nifty Bank: Declined 439.75 points (0.90%) to 48,304.05
- Nifty Midcap 100: Stood at 48,142, down 994.75 points (0.12%)
- Nifty Smallcap 100: Fell 320.25 points (2.11%) to 14,836.35
Market experts pointed out that the last three sessions have been lackluster, as indicated by small-bodied candlestick formations. These minimal price fluctuations signal a persistent bearish sentiment, with investors remaining cautious.
Sameet Chavan, Head of Research, Technical & Derivatives at Angel One, advised investors to closely monitor global developments.
“Moving forward, one must remain vigilant about global trends, which will influence the initial tone for domestic markets. At the same time, investors should refrain from making aggressive bets until momentum returns,” Chavan said.
Major Stocks in Focus: Reliance, ITC, and ICICI Bank Decline
Among the top losing stocks on the Sensex in early trade were:
- Reliance Industries
- ITC
- Sun Pharma
- ICICI Bank
- Hindustan Unilever
- Axis Bank
- Asian Paints
Global Market Weakness Weighs on Indian Stocks
The downward trend in Indian markets was triggered by significant losses in US indices in the previous trading session:
- Dow Jones closed 0.45% lower at 43,239.50
- S&P 500 dropped 1.59% to 5,861.57
- Nasdaq suffered a steep decline of 2.78%, closing at 18,544.42
Additionally, Asian markets echoed the negative sentiment, with major indices in Seoul, China, Japan, Bangkok, Jakarta, and Hong Kong trading in the red.
FIIs Continue Selling Spree; DIIs Step In
Foreign Institutional Investors (FIIs) continued selling for the sixth consecutive session, offloading equities worth ₹556.56 crore on February 27.
Meanwhile, Domestic Institutional Investors (DIIs) provided some support to the market, stepping in as net buyers, purchasing equities worth ₹1,727.11 crore on the same day.
Market Outlook: What’s Next?
With global market weakness persisting, investors are likely to tread cautiously in the coming sessions. Analysts advise closely tracking global macroeconomic cues, corporate earnings, and FII-DII activity before making significant trading decisions.
While short-term volatility remains high, long-term investors may find opportunities in fundamentally strong stocks as markets adjust to global trends.
