Indian stock markets saw a volatile session on February 19, with the Sensex and Nifty 50 fluctuating throughout the day before closing almost unchanged. The markets opened on a weak note, but strong buying in financial stocks helped them recover from early losses.
However, selling pressure in IT and pharma stocks limited the overall gains. Investors remained cautious as they awaited the minutes from the Federal Reserve’s latest meeting, which could provide insights into future policy moves.
The 30-share BSE benchmark Sensex dipped 28.21 points or 0.04 per cent to settle at 75,939.18. Intra-day, it hit a high of 76,338.58 and a low of 75,581.38, gyrating 757.2 points. The NSE Nifty skidded 12.40 points or 0.05 per cent to 22,932.90.
The banking sector played a key role in stabilising the market, as investors shifted focus to financial stocks amid uncertainties in global trade and economic policies. Meanwhile, pharma and IT stocks faced declines due to weak global cues and concerns over US tariffs on drug imports.
Among the top performers on the Nifty 50, Bharat Electronics gained 3.6 pc, followed by Hindalco Industries, Eicher Motors, and Larsen & Toubro, which saw gains ranging between 1.7 pc and 2.4 pc. On the losing side, Dr Reddy’s Laboratories and TCS declined by 2.6 pc and 2.3 pc, respectively.
The broader market showed signs of strength, with midcap and smallcap stocks rallying. The Nifty Midcap 100 index rose by 1.56 pc, closing at 50,527, while the Nifty Smallcap 100 jumped 2.36 pc to settle at 15,525. Analysts noted that after recent sell-offs, investors found value in these segments, leading to a rebound in mid- and small-cap stocks.
Market experts highlighted several factors influencing investor sentiment. Prashanth Tapse, Senior VP at Mehta Equities, pointed out that despite concerns over foreign institutional investor (FII) outflows, a weakening rupee, and ongoing global trade tensions, there was strong buying interest in banking, automobile, telecom, and metal stocks.
Attention now shifts to the Federal Reserve’s meeting minutes, which could impact market movements in the coming days. Investors are looking for hints on whether US policymakers anticipate further economic risks due to trade conflicts and inflationary pressures.
Sector-wise, IT stocks struggled following a weaker-than-expected earnings report from French IT firm Capgemini, which raised concerns about the industry’s near-term outlook. The Nifty IT index fell by 1.26%, making it the worst-performing sector of the day. Pharma stocks also saw losses, with the Nifty Pharma index dropping by 0.70%, after US President Donald Trump hinted at potential tariffs on drug imports.
On the other hand, the real estate sector showed resilience, with the Nifty Realty index rising by 1.67%. The media, PSU banking, and metal sectors also saw positive gains, adding to the overall market stability.
Vinod Nair, Head of Research at Geojit Financial Services, noted that while the benchmarks moved within a limited range, selective buying in mid- and small-cap stocks reflected renewed investor confidence. He also pointed out that while foreign fund flows have been inconsistent, there is optimism surrounding India’s economic growth prospects.
Looking ahead, market sentiment remains mixed. Concerns over trade policies and interest rate cuts persist, but optimism surrounding India’s GDP growth in the third quarter is providing some support. Expectations of increased government spending are also contributing to a positive outlook for large-cap stocks.
From a technical perspective, analysts suggest that Nifty 50 is currently consolidating within a broad range of 22,700 to 23,050. Rupak De, Senior Technical Analyst at LKP Securities, said that 22,800 remains a crucial support level. A fall below this mark could trigger further declines, but as long as the index holds above this level, markets are expected to remain stable. On the upside, a breakout above 23,150 could drive a fresh rally.
Similarly, analysts at Bajaj Broking indicated that the Nifty’s recent pattern suggests continued consolidation. They noted that dips towards 22,700 should be seen as buying opportunities, with the potential for an upward move beyond 23,050 if market conditions improve.
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