On February 18, Indian equity markets couldn’t hold onto their initial gains, snapping a three-day winning streak. The Nifty index fell below 25,400 due to widespread selling across various sectors. Investors grew uneasy amid rising tensions between the US and Iran, impacting overall sentiment.
The trading day began positively but quickly turned negative. By the end of the session, profit-taking pushed the Nifty down significantly, closing near its lowest point for the day. The Sensex also suffered, dropping by over 1,236 points, or 1.48%, to finish at 82,498.14, while the Nifty dropped by 365 points, or 1.41%, to settle at 25,454.35.
Broader indices followed suit. The Nifty Midcap index dipped by 1.6%, and the Nifty Smallcap index fell by 1.3%. The market saw a loss of over ₹7 lakh crore in the market capitalization of BSE-listed companies.
Among the biggest decliners were Interglobe Aviation, M&M, and UltraTech Cement. On the other hand, some stocks like Dr. Reddy’s Laboratories and HDFC Life managed to finish in the green despite the market’s overall downturn.
Most sectors ended the day negatively, with notable hits to Auto, Capital Goods, and Power, all down about 2%. Specific stocks also faced significant movements; Hilton Metal Forging saw an 11% drop following news about new rights equity shares, while Dixon Technologies fell 3% due to a downgrade in their rating.
In recent weeks, over 140 stocks reached their 52-week lows amidst this downturn, including well-known names like Just Dial and Ola Electric, while more than 100 stocks hit their 52-week highs, such as RBL Bank and Tata Steel.
Looking ahead to February 20, analysts highlight the Nifty’s recent struggle. Rupak De from LKP Securities notes that the index could face further challenges, especially if it slips below key support levels of 25,330 or even 25,000. This may trigger a bearish trend if follow-up selling occurs.
Sudeep Shah from SBI Securities agrees, stating that the Nifty is likely to test its support zones further. If it falls below 25,300, we might see a drop to 25,150 or 25,000 shortly after. The upside is also met with resistance in the 25,550 to 25,600 range, according to Shah.
As markets react to global events, it’s essential to keep an eye on the evolving financial landscape and gather insights. For the best investment choices, it’s advisable to consult professional guidance tailored to personal financial circumstances.
For more insights, you can check resources like the Securities and Exchange Board of India (SEBI) for updated market data and regulations.
