Sensex Ends 5-Day Losing Streak, Nifty Slips for 6th Session as Broader Markets Lag
Sensex Ends 5-Day Losing Streak : The Indian stock market witnessed a mixed session on February 25, with the Sensex snapping its five-day losing streak to close marginally higher, while the Nifty extended its losing run for the sixth consecutive session. Gains in financial and telecom stocks provided support, but IT and oil & gas stocks remained under pressure, dragging the broader indices lower.
Market Overview
The market opened on a cautious note as global uncertainties, especially concerns over fresh U.S. tariffs, weighed on investor sentiment. Despite a volatile session, the Sensex ended 147 points higher at 74,602 (up 0.2%), while the Nifty fell 27 points to close at 22,526 (down 0.1%).
Broader markets underperformed, with the BSE Midcap and Smallcap indices slipping by 0.5% each, reflecting weak investor sentiment beyond large-cap stocks. On the NSE, 958 stocks advanced while 1,642 declined, indicating broad-based weakness.
Factors Impacting the Market
1. Global Trade Tensions
Investor sentiment was impacted by renewed fears of U.S. trade restrictions, with President Donald Trump reinforcing tariffs on Canada and Mexico while tightening investment regulations on Chinese firms in strategic sectors. The move rattled global markets, particularly metals and IT stocks.
2. Foreign Institutional Investors (FIIs) Outflow
FIIs have been aggressively offloading Indian equities, selling shares worth ₹43,263 crore in February so far. However, Domestic Institutional Investors (DIIs) have cushioned the fall by purchasing stocks worth ₹47,787 crore, preventing a sharper selloff.
3. Weakness in Broader Markets
Mid-cap and small-cap stocks continued to lag, reflecting concerns over high valuations and selective stock performance. According to market strategist Rohit Srivastava, “Mid-caps are expected to underperform large caps for a prolonged period, and only companies with strong earnings growth will sustain their valuations.”
4. Sectoral Performance
| Sector | Performance | Key Factors |
|---|---|---|
| Financials & Telecom | Positive | Gains in Bharti Airtel, Bajaj Finance |
| IT & Oil & Gas | Weak | U.S. tariff concerns, global slowdown fears |
| Metals & PSU Banks | Declined >1% | U.S. trade restrictions on China impacting sentiment |
| Auto & FMCG | Mixed | M&M, Titan gained while Hero MotoCorp declined |
Key Stock Movements
Top Gainers
- Bharti Airtel (+2%): Stock surged after announcing a strategic partnership with Ericsson for 5G Core technology deployment.
- M&M (+2%): Extended its two-day rally to 4% as Jefferies called it a buying opportunity despite Tesla’s India entry.
- Titan, Nestle, Bajaj Finance: Gained 1-2% on strong investor interest.
Top Losers
- Sun Pharma (-3%): Faced selling pressure amid weak sector outlook.
- Hero MotoCorp, Hindalco (-2%): Declined on weak global cues.
- IT Stocks: Continued to slide as concerns over U.S. economic slowdown and lower consumer sentiment weighed on the sector.
Technical Analysis & Market Outlook
On the daily charts, Nifty formed an inverted hammer candlestick pattern, indicating potential buying interest near 23,500 levels.
Market expert Hrishikesh Yedve suggests that “as long as the index holds 23,500, a pullback to 22,700-22,800 is possible. However, a breach below 22,500 could trigger fresh selling pressure.”
With Nvidia’s upcoming earnings report being a major global trigger, investor sentiment remains cautious. Any surprise in its results could set the tone for global IT stocks, impacting Indian markets in the coming days.
Conclusion
Despite a brief pause in the downtrend, the market continues to face headwinds from global trade uncertainties, FII outflows, and sectoral weakness. Investors are advised to focus on fundamentally strong stocks, particularly in large caps, while exercising caution in the broader market.
Key Financial Ratios of Market Leaders
| Stock | P/E Ratio | P/B Ratio | ROE (%) | Dividend Yield (%) |
|---|---|---|---|---|
| Bharti Airtel | 43.2 | 5.1 | 12.8 | 0.47 |
| Bajaj Finance | 36.7 | 8.4 | 19.5 | 0.32 |
| M&M | 23.5 | 3.9 | 16.7 | 1.21 |
| Sun Pharma | 30.1 | 4.5 | 14.9 | 1.02 |
| Hero MotoCorp | 18.2 | 4.1 | 18.3 | 3.14 |
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.