India’s benchmark indices, Sensex and Nifty, were trading lower on February 21 as investor sentiment remained fragile amid concerns over reciprocal US tariffs and relentless selling by FIIs. Barring Nifty Metal, the remaining 12 sectoral indices traded in the red, with Nifty Auto leading the decline, slipping over 2 percent. The downturn was driven by losses in M&M, Tata Motors, and Maruti Suzuki. The Nifty Auto index has slumped nearly 6 percent so far in February.
At 10:40 AM, the Sensex tumbled 450 points, or 0.6 percent, to 75,284, while the Nifty slipped 140 points, or 0.6 percent, to 22,775. Market breadth remained weak, with 1,531 stocks advancing, 1,659 declining, and 147 remaining unchanged. The indices extended losses after the opening bell, with the Sensex dropping as much as 500 points and the Nifty briefly dipping below 22,750.
"Most major events are now behind us—the budget is done, there’s more clarity on U.S. tariff policies, and the RBI monetary policy is also out. The earnings season has also concluded, so we expect markets to remain sideways for a while," said Nirav Karkera, Head of Research at Fisdom.
"In the absence of any major positive or negative catalysts, sideways movement is likely to continue in the near term." Karkera added.
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Prashanth Tapse, Senior VP of Research at Mehta Equities, warned that traders should prepare for a volatile session, comparing aggressive long positions on Dalal Street to "building on quicksand." He pointed to market headwinds, including Wall Street's overnight drop, the potential disruption from Trump's proposed tariffs, persistent U.S. inflation, and the Federal Reserve's cautious stance on rate cuts.
Foreign institutional investors (FIIs) have offloaded Indian equities worth Rs 33,527.55 crore so far this month.
In the broader market, the BSE Midcap fell 0.7 percent, while the BSE Smallcap index declined 0.3 percent. Banking and auto stocks weighed on the indices, while telecom and construction sectors provided some support.
Also Read | Nomura forecasts a modest 4% upmove in Nifty 50 by year-end
On the Nifty 50, Hero MotoCorp,BPCL, Tata Motors, UltraTech Cement, and M&M were the biggest laggards, slipping 2-6 percent. Meanwhile, TCS, NTPC, Hindalco, Eicher Motors, and Shriram Finance led the gainers' list, rising around 1 percent.
Shares of JSW Energy climbed 4 percent, extending their winning streak to a fourth consecutive session after global brokerage Morgan Stanley reaffirmed its ‘overweight’ rating on the stock with a price target of Rs 545. The target implies a potential upside of 16.5 percent from the last close of Rs 468. Despite the recent rebound, JSW Energy has had a rough start to 2025, shedding 27 percent year-to-date.
Shares of Religare Enterprises surged over 5 percent after the Burman family secured majority control of the company and was officially designated as its promoter. The development follows the Burmans' Rs 2,116 crore open offer to acquire an additional 26 percent stake in Religare Enterprises, which saw a lukewarm response. According to open offer data, only 0.07 percent of equity was tendered against the 26 percent stake on offer. Despite the weak participation, the Burman Group's ownership in Religare Enterprises now stands at 25.16 percent, solidifying its control over the company.
U.S. stocks extended losses on February 20 as tariff anxieties and a weak forecast from Walmart weighed on sentiment. Meanwhile, Asia-Pacific markets traded mixed as investors digested inflation data from Japan while grappling with the implications of Trump's proposed trade policies.
"On the downside, 22,800 serves as a crucial support level, with a breach below this mark potentially triggering extended selling toward the 22,700–22,500 range," said Hardik Matalia, Derivative Analyst at Choice Broking. "On the upside, immediate resistance is seen at 23,000, followed by a critical hurdle near 23,200."
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