The Indian stock market continued its losing streak for the ninth consecutive session on February 17, as Nifty 50 and Sensex opened in the red. Weak global cues, heavy selling by foreign institutional investors (FIIs), a falling rupee, and the imposition of US reciprocal tariffs on Indian exports have dampened investor sentiment, leading to sharp declines.
With no major domestic triggers, market participants are closely monitoring global news, currency movements, and institutional flows for direction.
At 9:16 AM, the Sensex was down 590.57 points (0.78%) at 75,348.64, while the Nifty slipped 196.15 points (0.86%) to 22,733.10. The market breadth was weak, with 765 shares advancing, 1,901 shares declining, and 158 remaining unchanged.
Broad-Based Market Sell-Off
The correction was more severe in the broader markets, as:
- Nifty Smallcap 100 and Nifty Midcap 100 tumbled over 2% at the opening.
- All 13 sectoral indices opened in the red, though some pared losses later.
- Nifty Realty, Nifty Auto, and Nifty Media were the worst performers, losing between 1.5% and 2.5%.
- Nifty Pharma and Nifty Media were the only indices to trade in positive territory later.
Factors Pressuring the Market
- FIIs Selling Pressure – Continuous outflows from foreign investors are weighing on the market.
- Weak Rupee – A depreciating currency is adding to concerns for foreign investors.
- US Reciprocal Tariffs on India – Trade tensions with the US are creating uncertainty.
- Disappointing Q3 Earnings – Single-digit profit after tax (PAT) growth for Nifty and BSE500 companies led to fresh downgrades.
- Weak Global Cues – Global markets remain volatile, affecting investor sentiment.
Market Cap Drops to Eight-Month Low
The continued selling pressure has dragged down India’s total market capitalisation to an eight-month low. The market cap of BSE-listed companies fell below ₹400 lakh crore, marking the first such decline since June 2024.
Possible Market Support Factors
Despite the ongoing correction, a few positive developments may help the markets stabilize:
- Easing geopolitical tensions – Hopes of an end to the Ukraine-Russia war could improve sentiment.
- Cooling crude oil prices – Lower oil prices reduce inflationary pressures.
- Softening US Dollar – A weaker dollar could support emerging market inflows.
- Rate Cut Expectations – The RBI may consider cutting interest rates in its April Monetary Policy Committee (MPC) meeting, which could provide relief to investors.
With the earnings season wrapping up, analysts expect lower earnings downgrades than in the previous quarter, but overall, the sentiment remains weak. Investors should remain cautious amid ongoing global and domestic uncertainties.
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Source: Moneycontrol.
News Desk
