On February 17, 2025, the Indian stock market experienced high volatility, initially falling before recovering to close marginally higher. The Sensex ended up by 57.65 points at 75,996.86, while the Nifty gained 30.25 points to close at 22,959.50. This marked the end of an eight-day losing streak. The markets witnessed a significant intraday decline, with the Sensex dropping 645 points below 75,300 and the Nifty breaching the 22,750 mark. However, a late-session recovery helped the indices close in the green. The broader market showed mixed performance, with the BSE Midcap index rising by 0.5% while the smallcap index declined by 0.6%.
Sensex and Nifty: A Volatile Trading Day
The stock market has been in a corrective phase, declining nearly 2.5% in recent sessions. However, February 17 brought a slight recovery:
- Sensex: Gained 57.65 points (0.08%) to close at 75,996.86.
- Nifty 50: Increased by 30.25 points (0.13%), closing at 22,959.50.
Intraday Market Movements
- The Sensex hit a low of 75,300, witnessing a drop of 645 points during the session.
- The Nifty 50 fell 204 points, breaching the 22,750 level before recovering.
Broader Market Performance
The broader market saw a mixed trend:
- BSE Midcap Index: Up by 0.5%.
- BSE Smallcap Index: Down by 0.6%.
Sector-Wise Performance
Some sectors performed well, while others remained under pressure:
- Gaining Sectors:
- Pharma, PSU Banks, Energy, Consumer Durables, and Metals gained 0.5% to 1%.
- Losing Sectors:
- Auto, IT, Telecom, and Media fell by 0.5% to 1%.
Top Gainers and Losers
- Top Nifty Gainers: Bajaj Finserv, Adani Enterprises, Power Grid Corp, IndusInd Bank, Shriram Finance.
- Top Nifty Losers: M&M, Bharti Airtel, Wipro, TCS, Infosys.
Why Did the Market React This Way?
The stock market moves due to various domestic and global factors. Let’s analyze the reasons behind the recent volatility.
1. Global and Domestic Cues
- Investors closely watched global market movements and geopolitical developments.
- Foreign investors continued selling Indian equities, adding pressure to the market.
2. FII and DII Activity
- Foreign Institutional Investors (FIIs) sold equities worth ₹4,294 crore on February 14.
- Domestic Institutional Investors (DIIs) were net buyers, purchasing equities worth ₹4,363 crore.
3. Corporate Earnings & Market Sentiment
- Slow earnings growth impacted market confidence.
- According to Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, Q3 results showed only 7% earnings growth, which doesn’t justify high valuations.
Additional Market Insights
Volatility Index (India VIX) Surges
- India’s volatility index (India VIX) rose by 8.4%, signaling high market uncertainty.
- The NSE India VIX increased 5.82% to 15.89.
Forex Reserves on the Rise
- India’s foreign exchange reserves increased by $7.654 billion, reaching $638.261 billion for the week ending February 7.
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