Indian Stock Markets Roundup: February 24, 2025

The Indian stock markets closed sharply lower after a turbulent trading session marked by widespread selling. The BSE Sensex ended the day at 74,543.15, down 768.13 points or 1.02%, while the NSE Nifty 50 settled at 22,565.90, plummeting 230.35 points or 1.01%. The broader market indices also faced significant pressure, with the BSE MidCap index dropping 1.32% and the BSE SmallCap index declining 0.7%, signaling a broad-based selloff after recent resilience.

Key Highlights:

Market Sentiment: The session began with a steep gap-down opening, as hinted by GIFT Nifty trends, with the India VIX spiking 5.8% to 15.09, reflecting heightened market uncertainty. Posts on X described a "brutal selloff" in midcap and smallcap indices, with Nifty consolidating below 22,600 after breaching key support levels.
Top Gainers: Amid the downturn, NTPC stood out, gaining 2.8% to ₹325.80, supported by optimism in the power sector. Shriram Finance rose 2.1% to ₹576.45, and Bharti Airtel edged up 1.5% to an unspecified level, buoyed by telecom sector stability.
Top Losers: HDFC Bank led the declines, falling 2.9% to ₹1,675.30, exacerbating banking sector woes. Zomato tumbled 3.8%, HCL Tech dropped 3.2%, and IndusInd Bank shed 2.7%, with IT and financial services bearing the brunt of the selloff.
Sectoral Performance: Sectoral indices were overwhelmingly in the red. The Nifty IT index slumped 2.2%, driven by losses in Infosys and TCS, while Nifty Financial Services fell 1.8%. Nifty Pharma and Healthcare offered slight relief, inching up 0.3% and 0.5%, respectively, but couldn’t offset broader declines.
FII and DII Activity: Foreign Institutional Investors (FIIs) continued their aggressive selling, offloading shares worth ₹2,500 crore (provisional), pushing their February net sales past ₹36,977 crore. Domestic Institutional Investors (DIIs) countered with net purchases of ₹2,100 crore, though this failed to stem the slide.

Notable Corporate Updates:

Inox India: Shares gained after becoming the first Indian firm to receive IATF 16949 certification for cryogenic fuel tanks, boosting industrial sentiment.
Indegene: Launched its Cortex AI platform for life sciences, though pharma sector weakness limited gains.
Religare Enterprises: Surged 18% last week after the Burman family’s open offer success, but saw profit-taking today.

Market Context:

The sharp decline followed global market weakness, with U.S. equities dropping amid fears of declining consumer demand and potential Trump tariffs. Domestically, relentless FII outflows, a weakening rupee, and concerns over sluggish growth and rising U.S. stagflation risks hammered sentiment. Posts on X highlighted a “market rout” in midcaps and smallcaps. Analysts point to a possible further correction for Nifty if selling persists, though domestic buying in broader markets offers a glimmer of hope.