/industry-wired/media/agency_attachments/2024/12/04/2024-12-04t130344212z-iw-new.png)
/industry-wired/media/agency_attachments/2024/12/04/2024-12-04t130332454z-iw-new.jpg)
/industry-wired/media/media_files/2025/02/21/eypxjczXa8qelZWMN2Lh.jpg)
/industry-wired/media/media_files/2025/02/21/eypxjczXa8qelZWMN2Lh.jpg)
The BSE Sensex fell over 500 points, while the Nifty 50 slipped below the 22,800 mark
The Indian stock market experienced a downturn, influenced by global trade tensions and sector-specific challenges. The benchmark indices, BSE Sensex and NSE Nifty 50, both registered declines, reflecting cautious investor sentiment.
Market Overview
The BSE Sensex fell over 500 points, while the Nifty 50 slipped below the 22,800 mark. At the time of writing, the Sensex was trading at 75,266.88, down 469 points or 0.62%, and the Nifty 50 was at 22,768.65, down 144 points or 0.63%. This decline is attributed to concerns over potential U.S. tariffs and continuous foreign investor outflows. Foreign institutional investors (FIIs) have sold shares worth ₹3,311.55 crore on February 20, while domestic institutional investors purchased equities amounting to ₹3,907.64 crore during the same period.
Sectoral Performance
Automobile Sector: The Nifty Auto index emerged as a significant loser, declining nearly 2%. This downturn is linked to reports that the government may reduce import duties on electric vehicles to 15%, potentially increasing competition from global players like Tesla. Mahindra & Mahindra's shares fell by 5.7%, and Tata Motors experienced a 2.2% drop.
Financial Sector: Financial stocks also faced pressure, with the Nifty Financial Services index down by 1%. ICICI Bank's shares declined by approximately 1.7%, impacting the overall banking index. The persistent selling by FIIs, who have offloaded shares worth $11.75 billion so far in 2025, has significantly affected this sector.
Top Gainers
Despite the overall bearish trend, certain stocks demonstrated resilience:
Vijaya Diagnostic Centre: Shares surged by 8.69%, closing at ₹1,005.30. The company's strong quarterly performance and expansion plans have bolstered investor confidence.
JSW Infrastructure: The stock rose by 7.55% to ₹256.30, driven by the announcement of new projects and robust earnings in the recent quarter.
Century Plyboards: The company's shares increased by 7.13%, reaching ₹801.10, following reports of increased demand in the real estate sector.
Godrej Industries: The stock climbed by 6.91% to ₹1,081.65, attributed to positive developments in its consumer goods segment.
JSW Energy: Shares advanced by 6.68% to ₹499.85, supported by favorable government policies in the renewable energy sector.
Top Losers
Several stocks faced significant declines:
Mahindra & Mahindra: The stock dropped by 5.7% to ₹2,682.75, impacted by potential increased competition in the EV market due to reduced import duties.
Wipro: Shares fell by 2.28% to ₹306.00, amid concerns over global economic uncertainties affecting the IT sector.
Tata Motors: The stock decreased by 1.95% to ₹676.45, influenced by similar factors affecting Mahindra & Mahindra.
Power Grid Corporation of India: Shares declined by 1.81% to ₹261.00, possibly due to profit-booking by investors after recent gains.
Sun Pharmaceutical Industries: The stock was down by 1.75% to ₹1,640.50, following reports of regulatory challenges in international markets.
Global Influences
Investor sentiment has been adversely affected by potential U.S. tariffs on imports, including automobiles and pharmaceuticals. President Donald Trump's administration has proposed tariffs of up to 25% on these imports, aiming to protect domestic industries. This development has raised concerns among Indian exporters about reduced competitiveness in the U.S. market.
Market Outlook
Analysts suggest that the Indian stock market may continue to experience volatility in the near term due to global trade tensions and persistent foreign investor outflows. However, sectors such as renewable energy and infrastructure may offer investment opportunities, supported by favorable government policies and increased domestic demand. Investors are advised to adopt a cautious approach, focusing on fundamentally strong companies with robust growth prospects.
In summary, the Indian stock market on February 21, 2025, reflected a mix of challenges and opportunities. While global trade issues and sector-specific concerns have led to a cautious market environment, certain sectors and companies continue to demonstrate resilience, offering potential avenues for informed investors.