On February 17, bulls took over after an 8-day slump, with the Sensex rising by 0.08% and the Nifty 50 gaining 0.13%. While mid-cap and small-cap equities also increased, financials and pharmaceutical sectors made a substantial contribution.
Indian Stock Market: In Monday's trading session, bulls once again grabbed control of Dalal Street, propelling the front-line indices into positive territory following an eight-day drop. Despite the fact that the Nifty 50 and Sensex started the day lower, a notable recovery in financials and a robust contribution from pharmaceutical stocks gave the markets much-needed respite and a lift.The Nifty Pharma index was the biggest gainer on the sectors front, rising 1.27%. The Nifty Bank, Nifty Metal, Nifty Oil & Gas, and Nifty Consumer Durables all finished the day higher, with gains varying from 0.32% to 0.82%.
Market sentiment is being impacted by investors' growing attention to international events in the lack of short-term local triggers. Concerns about the possibility of a full-scale trade war, including supply chain disruptions and the possibility of weaker economic development, are being raised by the escalating tensions in international trade.
These elements have added to the already pessimistic outlook, which was stoked by rising valuations and modest earnings growth. As a result, foreign investors have pulled billions out of the Indian markets.
After selling ₹87,374 crore worth of Indian shares in January, FPIs have now sold ₹22,929 crore worth of shares on exchanges this month. According to Trendlyne data, this raises their year-to-date (YTD) outflows to ₹1.10 lakh crore.
For the first time in more than 14 months, India's market value has fallen below $4 trillion due to the persistent selling by FPIs.
In addition to having an effect on markets, the selling has put a lot of pressure on the Indian rupee, which has already dropped by around 1.50% in 2025, making it the second-worst performing Asian currency behind the Indonesian Rupiah.
"Modest earnings growth in Q3 FY25, coupled with sustained selling by FIIs, is limiting the potential for a near-term market rebound," Vinod Nair, Head of Research at Geojit Financial Services, stated in response to today's market performance. A growing trade deficit and a declining rupee are expected to make investors more cautious. Valuations are still not tempting even after wider markets saw a plunge correction. However, a market recovery might be supported by any reduction in US trade uncertainty as well as early indications of a revival in discretionary spending.
Technical Prospects
"Buying interest at the lower end of the range drove the index to close significantly higher from the day's low," stated Rupak De, Senior Technical Analyst at LKP Securities. But since it was unable to recover the crucial Fibonacci retracement level, mood is still negative.
Furthermore, the index keeps trading below important moving averages, which strengthens the bearish tone overall. Unless the index makes a clear closing or sustained crossing above 23,150, it is likely to remain a sell-on-rise candidate in the near future. Support is positioned at 22,800 on the downside," he continued.
"The Nifty has formed a bullish belt hold candlestick pattern near multiple support zones, indicating strength," stated Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates. A buy-on-dips approach is still advantageous as long as the index maintains 22,725. A clear move above 23,250 could validate a short-term bottom reversal, although the 21-Day Simple Moving Average (DSMA) around 23,240 serves as an immediate barrier.
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