Sensex and Nifty Begin on a Downbeat as Auto and IT Sectors Struggle

Feb, 17 2025

Troubling Start for Indian Markets

Indian equity markets have kicked off the day on the back foot, with the BSE Sensex and NSE Nifty 50 both experiencing a shaky opening as selling pressure mounts. On the morning of February 17, 2025, the Sensex dropped by 256 points, landing at 75,683.34, while the Nifty 50 saw a 65-point dip, standing at 22,863.85. The downward momentum in the markets has been primarily driven by weak performances in the auto, realty, and IT sectors.

The broader market indices shared in the woes, with significant declines in the Nifty Midcap and SmallCap indices, which have slid 7.4% and 9.6% respectively over the week. These sectorial struggles are exacerbated by continuous foreign institutional investor outflows, as ₹21,272 crore has been pulled out of Indian equities in just the first two weeks of February.

Investor Caution Amid Global Concerns

Analysts are keeping a close eye on the Nifty 50's current position, particularly its immediate support level of 22,800. Should it fail to maintain this threshold, the Nifty might very well test its 20-month exponential moving average near 22,450, potentially triggering further market jitters.

Despite these red flags, a few sectors have demonstrated resilience. Pharmaceuticals, metals, and financials have managed to hold steady amidst the losses, with names like Bajaj Finserv and IndusInd Bank standing out as notable gainers.

The global market backdrop has also played a role, albeit a mixed one. While US markets closed with little change, and Asian markets exhibited varied trends, foreign investors remain cautious. Global trade tensions and concerns about US tariffs continue to loom over the financial environment, adding layers of uncertainty to the investment outlook.