Sensex Plunges 400 Points, Nifty Dips Below 22,900 as Small- & Mid-Cap Stocks Crash Up to 3%
Sensex Plunges : The Indian stock market witnessed a sharp sell-off on [insert date], with the benchmark indices Sensex and Nifty tumbling under heavy selling pressure. The Sensex sank over 400 points, while the Nifty slipped below the crucial 22,900 mark. Small- and mid-cap stocks bore the brunt of the sell-off, with their indices plunging up to 3%, reflecting widespread bearish sentiment.
FIIs Continue Selling Spree Amid Global Cues
Foreign Institutional Investors (FIIs) have remained net sellers in February, offloading Indian equities worth ₹24,888 crore. Market experts believe that persistent selling by FIIs is a major factor contributing to the market downturn. According to Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, a sustained rally is unlikely until there is a decline in the US dollar and bond yields.
“The FIIs remain in sell mode due to global risk-off sentiment. A shift in FII behavior will only come when the US dollar weakens, and bond yields decline,” Vijayakumar noted.
Sectoral Bloodbath: Nifty Energy, Media, and Pharma Lead Declines
All 13 major sectoral indices closed in the red, with Nifty Energy, Media, and Pharma sectors suffering the most, falling between 2-3%. Market participants cited concerns over global economic uncertainty and earnings pressure as key reasons for the sector-wide downturn.
Top Losers & Gainers: Adani Group Stocks, Financials Drag Markets Down
Among the worst performers on the Nifty 50 were:
- Bharat Electronics (-3%)
- Adani Enterprises (-2.5%)
- Adani Ports (-2.3%)
- Shriram Finance (-2.8%)
- IndusInd Bank (-2.1%)
In contrast, defensive stocks such as FMCG majors showed resilience, with:
- Nestlé India (+1%)
- Hindustan Unilever (HUL) (+0.8%)
- ITC (+0.5%)
- Britannia (+0.2%)
investors flocked to these safe-haven stocks amid the broader market weakness.
Stock-Specific Action: Deepak Nitrite, Senco Gold Plunge
Deepak Nitrite witnessed a steep 15% fall after reporting a massive 50% decline in Q3FY25 net profit, which dropped to ₹98 crore from ₹202 crore in the same period last year. The stock faced heavy selling as investors reacted to weaker-than-expected earnings.
Senco Gold was another major casualty, nosediving 20%, marking its steepest drop since listing. The stock’s last significant correction was in October 2024, when it fell 19%.
Technical Outlook: Crucial Levels to Watch for Nifty
Shrikant Chouhan, Head of Equity Research at Kotak Securities, highlighted key resistance and support levels for Nifty 50.
- Resistance: 23,200 – 23,250
- Support: 22,950 – 22,800
A drop below 22,800 could further weaken market sentiment, potentially triggering additional selling pressure.
Chouhan advised traders to reduce weak long positions around 23,200 levels and suggested maintaining stop-loss at 22,950 for those holding long positions.
Market Outlook: What’s Next?
With FIIs aggressively selling and weak global cues persisting, market experts expect near-term volatility. Investors are advised to adopt a cautious approach, focusing on fundamentally strong stocks while avoiding excessive exposure to high-beta sectors.
A shift in US economic policies, a decline in bond yields, or positive domestic triggers could help stabilize the market in the coming sessions.
Key Financial Ratios of Top Stocks Affected
| Stock | P/E Ratio | P/B Ratio | ROE (%) | Dividend Yield (%) |
|---|---|---|---|---|
| Bharat Electronics | 28.5 | 6.2 | 22.4 | 1.9 |
| Adani Enterprises | 118.3 | 12.5 | 5.1 | 0.3 |
| Adani Ports | 24.7 | 4.8 | 18.2 | 1.2 |
| Shriram Finance | 13.9 | 2.4 | 16.8 | 1.7 |
| IndusInd Bank | 15.2 | 2.1 | 14.3 | 0.9 |
| Deepak Nitrite | 21.4 | 4.5 | 19.1 | 1.5 |
| Senco Gold | 11.8 | 1.9 | 15.7 | 0.8 |
| Nestlé India | 72.4 | 55.2 | 81.3 | 1.1 |
| HUL | 65.7 | 10.9 | 73.2 | 1.4 |
| ITC | 27.3 | 7.5 | 24.6 | 3.2 |
Conclusion
The Indian stock market faced a sharp correction today, with Sensex and Nifty struggling under heavy selling pressure from FIIs. Small- and mid-cap stocks were hit the hardest, while defensive FMCG stocks provided some relief. With global uncertainties weighing on market sentiment, traders should stay vigilant and track key technical levels for future trading strategies.
For long-term investors, this correction could present opportunities to accumulate high-quality stocks at attractive valuations. However, caution is advised in the near term until market stability is restored.
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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.