Foreign institutional investors (FIIs) have been selling in the domestic markets, with net outflows of around Rs 7,000 crore in the cash market for the week ending February 20. Despite this, domestic institutional investors (DIIs) have shown strong support, recording net inflows exceeding Rs 8,000 crore. Benchmark indices faced pressure, closing around 25,454 on February 19 due to global tensions and sector-wide declines in IT, financials, and autos.
A partial rebound was observed on February 20, with Nifty nearing 25,600 amid selective buying. The US Supreme Court’s decision to strike down broad “reciprocal” tariffs under IEEPA resets the interim US-India trade arrangement, limiting tariff exposure to 15 per cent for now. This move introduces short-term uncertainty for Indian exporters in sectors like textiles, pharmaceuticals, gems, and machinery.
President Donald Trump’s comments on exploring alternative legal routes for his tariff policy add a layer of policy uncertainty. The Sensex has recovered from the 82,000–82,500 region, closing positively and holding key channel supports. Market experts suggest that markets may remain volatile, with key supports at Nifty 25,300 and resistance at 25,700. Investors are advised to adopt a sell-on-rise strategy until bullish confirmation emerges, monitoring global cues and upcoming earnings for guidance.
