Sensex, Nifty Extend Losses as Financial Sector Drags Market Down:

India’s benchmark indices, Sensex and Nifty, ended lower for the third consecutive session on Thursday, weighed down by weak financial stocks and rising global trade tensions. Concerns over sluggish earnings growth, stretched valuations, and uncertainty around US trade policies fueled investor caution.

Market Summary: Sensex & Nifty End in the Red

BSE Sensex: Down 222 points (-0.3%) to 75,716
NSE Nifty50: Down 26 points (-0.1%) to 22,906
Advance-Decline Ratio (NSE):
- 1,861 stocks advanced
- 727 stocks declined

So far in 2025, Indian equities have lost over 3% and are now down nearly 13% from their record highs in September 2024.

Top Gainers & Losers on Nifty50

Gainers

Cipla
BEL (Bharat Electronics)
NTPC
Hindalco
Shriram Finance

Losers

HUL (Hindustan Unilever)
Mahindra & Mahindra (M&M)
ITC
Maruti Suzuki
HDFC Bank

Why Are Markets Falling? Key Factors Impacting Sentiment

US Tariff Concerns: On February 19, former US President Donald Trump announced plans to impose 25% or higher tariffs on automobile, pharmaceutical, and semiconductor imports.
India’s Pharma Sector at Risk: India has substantial pharmaceutical exports to the US, making it vulnerable to these tariffs.
Federal Reserve Signals Prolonged High Rates: The US Fed’s January meeting minutes suggest concerns that Trump’s tariffs could drive inflation, reducing chances of early rate cuts.
FIIs Selling Pressure: Foreign Institutional Investors (FIIs) have sold ₹30,216 crore worth of Indian equities in February.
DIIs Absorbing the Sell-Off: Domestic Institutional Investors (DIIs) have purchased ₹35,809 crore worth of stocks, limiting the market decline.

Sectoral Update: Mixed Performance Across Sectors

Sectors That Declined

Nifty Bank & Nifty Private Bank: Both down over 0.5% as financial stocks led the fall.
Nifty FMCG Index: Extended its record losing streak to 14 sessions, wiping out ₹2.7 lakh crore in investor wealth.

Sectors That Gained (Up Over 1%)

Oil & Gas
Auto
Metal
Realty
PSU Banks

Mid-cap and small-cap stocks outperformed, with the BSE Midcap and BSE Smallcap indices each gaining over 1%. However, both remain significantly below record highs, with mid-caps down 17% and small-caps 21% off their peaks.

Market Outlook: What’s Next?

Global Trade Developments: Investors will closely monitor US tariff policies and their impact on Indian exports.
Fed’s Interest Rate Path: A prolonged high-rate environment in the US could lead to further capital outflows from emerging markets like India.
Domestic Growth Factors: Despite global pressures, RBI’s recent optimism on India’s economic recovery in H2 FY25 could help stabilize sentiment.

While short-term volatility may persist, long-term investors could find buying opportunities in beaten-down sectors like FMCG and financials.