The market bloodbath continued for the fifth straight session as Sensex and Nifty 50 plunged 1.5 percent, battered by a mix of global and domestic headwinds. Donald Trump's fresh tariff strike, a sliding rupee, weak Q3 earnings, and relentless FII outflows fueled a broad-based selloff on February 11.
All 13 major sectoral indices were in the red, with financials, oil & gas, and auto stocks dragging Nifty lower. The broader market bore the brunt, with BSE Midcap and BSE Smallcap tumbling over 1 percent each. Meanwhile, India VIX—often called the "fear gauge"—spiked over 4 percent to reach 15. Rs 9 lakh crore has been eroded from the market capitalisation of the BSE-listed firms.
At close, the Sensex was down 1,015 points or 1.3 percent at 76,296, and the Nifty was down 309 points or 1.3 percent at 23,071. On the NSE, 252 shares advanced and 2,364 shares declined.
"The primary issue is earnings moderation, combined with global uncertainties—particularly the unpredictability surrounding Trump’s tariff policies. This is weighing on market sentiment," said Sanjeev Hota, Head of Research at Sharekhan.
Follow our live blog for all the market action
US President Donald Trump on February 10 signed executive orders reinstating and expanding tariffs on steel and aluminium imports, escalating trade tensions with key allies. The move revokes previous exemptions and duty-free quotas for major suppliers like Canada, Mexico, and Brazil, raising the risk of a broader trade war.
The Indian rupee, already on a weakening trend, extended its decline to 86.8 against the dollar today, battered by Trump's latest tariff threats, which strengthened the greenback.
Corporate earnings have offered little relief. "While the market has already corrected significantly over the past four months, earnings recovery is still absent. Q3 results have been mixed, with some big names underperforming expectations. Q4 is unlikely to see a sharp turnaround either," Hota added.
FIIs have pulled out Rs 12,643 crore from Indian equities this month alone, adding to the downward pressure.
Broader indices were not spared. "For small- and mid-cap stocks, it's a cyclical downturn similar to what we saw in 2018-19 when the small-cap index fell nearly 29 percent from its peak. This cycle is repeating," said Hota. "For large caps, another 5-7 percent decline could signal a bottom, but I don’t see small caps stabilizing anytime soon—particularly the smaller names."
All major sectoral indices—Nifty Auto, Nifty PSU Bank, Nifty Realty, Nifty FMCG, Nifty Media, Nifty Pharma, Nifty Healthcare, and Nifty Oil & Gas—sank 2-4 percent.
The Nifty Realty Index slumped 4 percent, extending its fall to 26 percent from its June 2024 peak of 1,157.35—officially slipping into bear market territory. All 10 stocks on the index dropped 2-6 percent, with Sobha and Oberoi Realty leading the declines.
Eicher Motors dragged down the Nifty Auto index, tumbling nearly 6 percent after missing Q3FY25 profit and margin estimates due to higher costs and weak premium motorcycle sales.
Among individual losers, Eicher Motors, Apollo Hospitals, Shriram Finance, Bharat Electronics, and Coal India tanked 3-6 percent. Meanwhile, Adani Enterprises, Grasim, Trent, Bharti Airtel, and Britannia eked out marginal gains, rising barely 1 percent.
Among individual stocks, SeQuent Scientific slid over 3 percent after its Q3FY25 net profit slumped 58.5 percent to Rs 3.4 crore. Keystone Realtors tumbled over 7 percent as net profit halved to Rs 15.1 crore from Rs 30 crore in Q3FY24. Devyani International fell over 3 percent after posting a net loss of Rs 49.2 lakh, compared to a profit of Rs 9.6 crore in the year-ago period.
"There has been consistent selling over the past several days, with short positions dominating the market. This is preventing support from holding, and every bounce is getting sold off," said Brijesh Ail, Technical and Derivative Analyst at IDBI Capital Markets & Securities.
"We’ve been watching 23,000 and 22,800 as key support levels since January. We are now back to those levels, so it remains to be seen whether they hold or break. If the previous low of 22,700 is breached, we could see panic selling. After that, we’ll have to wait for signs of stabilization or support," Ail said.
All eyes are now on the upcoming CPI inflation data from both India and the U.S., set for release on February 12, as investors look for clues on the next market move.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
