Mumbai, February 27, 2025 – The Indian stock market closed mixed on Thursday, with the Sensex rising 10 points to 74,612 and the Nifty slipping 2 points to 22,545. This marks the longest losing streak in 29 years, with the indices declining for five consecutive series.

During this period, the Nifty has fallen over 14%, including a 4% drop in the February series. Midcap stocks underperformed, with the Nifty Midcap 100 index falling by 1% and nearly 20 stocks hitting their 52-week lows.

Key Market Highlights

Major Stock Movements

• 52-Week Lows: Tata Motors, SBI, Hero MotoCorp, and 20 Nifty Midcap 100 stocks.
• Top Gainers:
  • NBFC and banking stocks surged 3-6% after the RBI rolled back risk-weight hikes, benefiting AU Small Finance Bank, RBL Bank, L&T Finance, Shriram Finance, and Chola Finance.
  • SRF gained 3% after a positive demand outlook in an analyst meeting.
  • Select midcaps like GNFC, PVR, Varun Beverages, IEX, Bata, and Amara Raja ended in the green.
• Top Losers:
  • UltraTech Cement’s entry into the cables and wires sector hit stocks like Polycab, Finolex Cables, KEI Industries, and Havells, with losses of up to 21%.
  • Prestige Estates fell 5% after reports of a tax department search.
  • Auto stocks declined 2% ahead of monthly sales data, dragging down the sector.

Technical Market Outlook

Rupak De, Senior Technical Analyst at LKP Securities, commented:

“Nifty remained range-bound and closed flat. Sellers dominated at higher levels, with 22,500 acting as strong support. If Nifty falls below 22,500, we expect a decline towards 22,200. On the upside, 22,650 remains immediate resistance. The index is likely to remain a ‘sell on rise’ as long as it stays below 22,750-22,800.”

Foreign Investors Pull Out ₹3.11 Lakh Crore

The market downturn has been largely driven by Foreign Portfolio Investors (FPIs) withdrawing ₹3.11 lakh crore from Indian equities between October 2024 and February 2025.

Reasons for FPI Selling:

Weak corporate earnings in Q3 FY25, failing to justify high stock valuations.
China’s economic recovery attracting global investors.
Uncertainty around US trade policies under Donald Trump, affecting global market sentiment.
US Federal Reserve halting rate cuts, reducing liquidity inflows into emerging markets like India.

Market Outlook: More Volatility Ahead?

Brokerages are revising their market targets as investors brace for more turbulence:

• InCred Equities has cut its Nifty 50 target to 22,850 by March 2026, implying only a 2% upside from current levels.
  • Worst-case scenario: 8% downside.
• Prabhudas Lilladher reduced its base target from 27,172 to 25,689, citing continued volatility.
  • Bear-case: 24,337, Bull-case: 27,041.
• Motilal Oswal Financial Services (MOSL) warned of macroeconomic headwinds, slowing earnings growth, and global uncertainties impacting sentiment.

Global Market Cues

• Asian markets traded in a narrow range, with mixed signals from global markets.
• Nvidia earnings failed to push stocks higher, dampening US tech sentiment.
• Trump’s new tariff policies raised fresh concerns about global trade.
• US Market Trends (as of Tokyo time, 9:08 AM):
  • S&P 500 futures: Flat.
  • Hang Seng futures: Down 0.5%.
  • Japan’s Topix: Up 0.1%.
  • Australia’s S&P/ASX 200: Up 0.6%.
  • Euro Stoxx 50 futures: Up 1.5%, indicating a more positive outlook for Europe.

Final Takeaway

The Indian market is experiencing a rare, prolonged downturn, with global uncertainties, FPI exits, and weak earnings weighing on sentiment. With Nifty trading below key support levels, investors should brace for further downside risks in the near term.