The Indian equity markets experienced a decline on Tuesday due to volatility during the Nifty weekly expiry session and weakness in metal stocks. By 9:30 am, the Sensex dropped by 232 points to 83,044, while the Nifty fell by 92 points to 25,590. Main broad-cap indices mirrored this trend, with the Nifty Midcap 100 declining by 0.28% and the Nifty Smallcap 100 by 0.05%.
Most major sectoral indices were in the red, except for Nifty IT, FMCG, and PSU Bank. Nifty metal was the biggest loser, down by 1.35%, while IT emerged as the major gainer, rising by 1.08%. Market watchers noted that immediate support for Nifty is at 25,550-25,500, with resistance at 25,700-25,800.
Bank Nifty displayed relative resilience, with immediate support at 60,500–60,400 and resistance near 61,000. Analysts highlighted the ongoing robust DII inflows providing support amidst intermittent FII outflows. However, caution prevails due to weakness in the IT sector, profit booking, and mixed global cues, leading to range-bound and choppy trading until new triggers emerge.
Despite recent sell-offs in capital market-related stocks following RBI’s stricter rules on loans, markets closed higher, reflecting the market’s underlying strength driven by India’s improving macroeconomic fundamentals. Corporate earnings growth of 14.7% in Q3 surpassed expectations, with momentum expected to continue in Q4 and accelerate in FY27.
In Asian markets, China’s Shanghai and Shenzhen indices declined, while Japan’s Nikkei and South Korea’s Kospi also saw losses. US markets were closed for a Federal holiday, with Nasdaq easing slightly, S&P 500 adding, and Dow Jones gaining in the last session. On February 16, FIIs net sold equities worth Rs 972 crore, while DIIs were net buyers of equities worth Rs 1,667 crore.
