Share Market Today
On Friday, February 21, 2025, the Indian stock market experienced a downward trend, influenced by global cues and sector-specific challenges.
Market Opening
The trading session commenced with both benchmark indices opening in the red. The BSE Sensex started at 75,612.60, a decline of 123.35 points or 0.16%, while the NSE Nifty 50 began at 22,857.20, down by 55.95 points or 0.24%. This initial dip was attributed to mixed global signals and ongoing concerns over U.S. trade tariffs.
Midday Performance
As the session progressed, the downward momentum intensified. At 3:30 p.m. IST, the Nifty 50 closed at 22,795 down more than half percent , and the BSE Sensex had fallen by 0.56% to 75,311. The financial and automobile sectors were the primary contributors to this decline.
In the financial sector, private lender ICICI Bank saw a significant drop of approximately 1.43%, leading the bank index down by 0.73%. This sector faced challenges due to persistent foreign investor outflows, with foreign portfolio investors selling shares worth $11.75 billion so far in 2025, including ₹33.12 billion ($382.6 million) on Thursday.
The automobile sector also faced headwinds, with reports suggesting that the government might reduce import duties on electric vehicles from 110% to 15%. This potential policy change, aimed at facilitating Tesla’s entry into the Indian market, raised concerns about increased competition for domestic manufacturers. Consequently, Mahindra & Mahindra’s shares plummeted by 5.7%, and Tata Motors experienced a 2.2% decline.
Sectoral Highlights
- Financials: The sector experienced a 0.73% decline, influenced by significant sell-offs from foreign investors.
- Automobiles: The potential reduction in EV import duties led to a 2.5% drop in the auto index, with major players like Mahindra & Mahindra and Tata Motors bearing the brunt.
- Information Technology: This sector closed flat at 40544, reflecting broader market sentiments.
- Midcap and Smallcap Indices: The midcap index decreased by more than 1%, while the Nifty smallcap 50 index fell by more than 1%, continuing their downward trajectory from record highs due to valuation concerns and subdued earnings.
Notable Performers
Despite the overall bearish trend, certain stocks showcased resilience. L&T Technology Services witnessed a rise of around 4% after Macquarie upgraded its rating to “outperform,” citing accelerated growth prospects following its acquisition of Intelliswift. Additionally, Religare Enterprises gained 15% as the Burman family, owners of Dabur, assumed control of the company.
Global Influences
The Indian markets mirrored global apprehensions, particularly those stemming from the U.S. Concerns over potential tariff implementations and persistent inflation in the U.S. have kept investors on edge. Analysts highlighted that uncertainties surrounding U.S. trade policies and continuous foreign outflows, especially in light of China’s economic recovery, are major overhangs affecting domestic market sentiment.
Closing Remarks
The trading day on February 21, 2025, was marked by cautious investor sentiment, driven by both domestic policy considerations and global economic uncertainties. Market participants are advised to stay informed about policy developments and global market trends, as these factors are likely to influence market dynamics in the near term.
Disclaimer:- This is AI generated article. Please verify the detail when using.