Closing Bell: Nifty at 22,900, Sensex down 203 points; mid, smallcaps shine

Indian equity indices ended lower on third consecutive session on February 20 with Nifty around 22,900. At close, the Sensex was down 203.22 points or 0.27 percent at 75,735.96, and the Nifty was down 19.75 points or 0.09 percent at 22,913.15.

Weak Asian market cues kept the mood sluggish with a negative bias through the session in the domestic market as investors continue to trade with caution. FIIs exiting Indian equities in droves over past few months have been making investors jittery, thus leading to risk averseness.

Markets remained subdued on the weekly expiry day, ending nearly unchanged amid the ongoing tussle. After an initial dip, Nifty fluctuated within a narrow range and closed flat at 22,912.90. Sectoral trends remained mixed, with metal, energy, and auto emerging as top gainers, while banking and IT underperformed. Meanwhile, broader indices extended their gains for another session, advancing nearly one and a half percent each.

The ongoing lack of sustained alignment between two key sectors—banking and IT—continues to create uncertainty among market participants, as other sectors are not in a position to drive a major trend. However, the recent rebound in broader indices has offered some relief. In this scenario, a cautious stance on the index is recommended, with close attention to banking and IT for potential signals. Meanwhile, select pockets across various sectors, except FMCG, are showing notable traction. Traders should prioritize identifying quality stocks while refraining from aggressive positions.

Domestic equity indices experienced minor losses as rising concerns over potential U.S. tariffs on Indian goods led to capital outflows. Additionally, the proposed trade policy is expected to exert inflationary pressures, with the latest Fed Minutes indicating that an interest rate cut may be delayed.

However, the broader market showed an initial recovery, supported by expectations of improving consumption from Q1FY26, driven by moderating domestic inflation and the recent RBI rate cut.

Nifty continued to consolidate on Thursday and closed the day lower by 19 points. After showing weak opening the market shifted into an upside recovery in the early part and later shifted into a range bound movement for remaining part of the session.

A small positive candle was formed on the daily chart at the lows, technically this market action indicates a range bound movement in the market at the lows.

Nifty is currently placed near the strong support around 22700 levels (38.2% Fibonacci Retracement). A sustainable move above the initial hurdle of 23100 levels could confirm short-term bottom reversal for the market and that could pull Nifty to further highs. Hence, there is a possibility of an upside bounce in the next 1-2 sessions.

The Indian rupee gained strength after lingering within a confined range for the past five days. This ascent was propelled by foreign banks dollar selling and the persistent unwinding of long positions by market players.

The market dynamics for the rupee are progressively enhancing as the U.S. dollar falters against both major and regional currencies.

In the short term, the spot USD/INR has support between 86.30 and 86.20, while 87.40 remains a strong resistance level to overcome.

Indian rupee ended 28 paise higher at 86.66 per dollar on Thursday versus Tuesday's close of 86.94.

Indian equity indices ended lower on third consecutive session on February 20 with Nifty around 22,900.

At close, the Sensex was down 203.22 points or 0.27 percent at 75,735.96, and the Nifty was down 19.75 points or 0.09 percent at 22,913.15. About 2570 shares advanced, 1223 shares declined, and 109 shares unchanged.

HDFC Bank, Maruti Suzuki, Tech Mahindra, HCL Technologies and Tata Consumer are among major losers on the Nifty, while gainers are Shriram Finance, NTPC, Adani Ports, M&M, Bharat Electronics.

BSE Midcap and Smallcap indices up 1 percent each.

On the sectoral front, auto, metal, oil & gas, media, power, realty, PSU Bank up 1-2 percent, while bank index down 0.5 percent.

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The Sensex was down 189.54 points or 0.25 percent at 75,749.64, and the Nifty was down 15.90 points or 0.07 percent at 22,917.00. About 2456 shares advanced, 1067 shares declined, and 94 shares unchanged.

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At CDSL we have seen a growth in female demat account holders. We have seen 88 percent growth in increased account opening by the youth. As of Jan 31, the contribution of tier 2 and tier 3 cities has seen staggering growth.

As a part of our commitment we have brought down the transaction charges for demat accounts as per sebi.

#1 For PV segment, most companies have a very cautious outlook for FY26

#2 In 2-w segment, cos were more positive

#3 TVS expects 9-10 percent industry growth YoY, HMCL expects 7-8 percent growth YoY in FY26E

#4 In commercial vehicles, TTMT expects 4 percent growth YoY

#5 Ashok Leyland expects single-digit growth in trucks & double-digit growth in buses in FY26

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Indian Rupee gained today on soft US Dollar and overnight decline in crude oil prices. FOMC minutes suggest the US central bank may put rate cuts on hold, citing inflation.

We expect Indian Rupee to trade with a slight negative bias on weak domestic equities and fresh FII outflows. However, overall weakness in crude oil prices may cushion sharp downside. Traders may take cues from weekly unemployment and Philly Fed manufacturing index data from the US. We expect USDINR to trade in the range of 86.40-87.

#1 CLSA calls it an attractive and inexpensive opportunity to invest in India's largest clean and green power utility.

#2 CLSA lowers the target price to Rs 117 from Rs 120 per share.

#1 India to buy 149 software defined radio from Bharat Electronics

CIE Automotive India, John Cockerill India, Hindustan Adhesives, Sanofi Consumer Healthcare India, and Vasudhagama Enterprises will release their quarterly earnings on February 20.

#1 Industrial stocks in our universe are 15-50 percent below peak levels

#2 Industrial stocks 2-8x above prices in Feb 2021 when capex-oriented budget was announced

#3 Compare current valuations to 2010-20 down cycle, when capex rose at single-digit CAGR

#4 ABB, Siemens, Thermax, L&T & BHEL are trading at discounts on FY27E P/Es to down-cycle multiples

#5 BEL & KEI are trading at highest premiums

#1 Long-term growth outlook strong; muted pricing a near-term headwind

#2 Expect JSTL to generate strong cash flow, which can be utilised to fund expansion plan & for deleveraging

#3 JSTL on track to achieve 50 mpta capacity by FY31

The US Food and Drug Administration (USFDA) conducted an inspection at the company’s Active Pharmaceutical Ingredient (API) manufacturing facility in Alathur, Tamil Nadu, during February 10-18.

The inspection concluded with seven minor observations, none of which pertain to the data integrity of the facility. The Alathur facility specializes in the production of Cephalosporin antibiotics, a critical class of life-saving drugs.

The Board has approved the appointment of Abhinandan Gupta as the Chief Financial Officer of the company, effective February 19.

The company has signed an MoU with the Government of Goa to support the growth of the MSME ecosystem in the state.

The engineering solutions company announced the appointment of Sukamal Banerjee as Executive Director and Chief Executive Officer of its DET business, effective February 19. He will also serve on the Board of Directors of Cyient.

The Joint Commissioner of State Tax in Mumbai has ordered HDFC Bank and ICICI Bank to provisionally attach the operative bank accounts of the company held in these banks.

The tax authority’s order will have no financial impact on the entity.

#1 Remain cautious on company despite a 20 percent+ rally YTD

#2 Expect credit cost to remain cyclically high

#3 Structural decline in RoA to continue with BAF's long-range strategy set to disappoint

#4 Too much optimism is baked into consensus EPS

#5 Stock prices in a tough ask of 23 percent 10-year EPS CAGR

#6 Incremental unsecured underwriting for NBFCs has been inferior

#7 Margin & RoA to keep falling structurally

#1 Stock price has declined 30 percent since October

#2 Stock trades below (-) 1 SD on long-term average forward PE

#3 Company has stated it plans to bid for HPHT gas from ONGC

#4 This should help in margin defence & be supportive of volume growth

#5 See a price hike in near future

#6 Any sudden reduction in APM allocation is key risk

The Minerals & Metals (M&M) business vertical of L&T secured an order from Hindalco for setting up an 850 KTPA (kilo tonne per annum) greenfield alumina refinery plant in Odisha. The scope of work includes engineering, procurement, construction &

installation.

RailTel Corporation of India has received the work order from High Court of J&K And Ladakh for Service Order amounting to Rs 22,44,28,034 (Including Tax).

IntellectAI, the Insurtech business unit of Intellect Design Arena offering AI and data-powered underwriting solutions, announced a breakthrough agreement with London’s premier Market Insurance and Reinsurance Brokerage firm.

Under this multi-year engagement, the brokerage firm will deploy Intellect’s underwriting ecosystem which consists of Magic Submission and Xponent solutions, built on IntellectAI’s proprietary Purple Fabric platform, to enhance and streamline its insurance policy placement process.

The Sensex was down 218.46 points or 0.29 percent at 75,720.72, and the Nifty was down 37.15 points or 0.16 percent at 22,895.75. About 2389 shares advanced, 1059 shares declined, and 100 shares unchanged.

#1 New external CEO announcement a positive

#2 New CEO brings strong sales experience , should bode well for his new role at Cyient

#3 Should upgrade portfolio from project-based deals to longer-term annuity deals

#4 Should rework guidance process to prevent company missing its guidance again

#5 Avoid providing guidance until new CEO has more confidence in business outlook

#6 Scale up auto ER&D practice via acquisitions, is a missing piece in portfolio

#7 Auto ER&D could be the fastest-growing sub vertical over medium to long-term

The US Food and Drug Administration (USFDA) conducted an inspection at the company’s Active Pharmaceutical Ingredient (API) manufacturing facility in Alathur, Tamil Nadu, during February 10-18.

The inspection concluded with seven minor observations, none of which pertain to the data integrity of the facility. The Alathur facility specializes in the production of Cephalosporin antibiotics, a critical class of life-saving drugs.

The company has received an order for the supply of solar modules for 362.5 MWp from Khaba Renewable Energy, a subsidiary of Engie India.

Equities fell across Asia as concerns over a realignment of US geopolitical priorities weighed on risk

sentiment. Gold climbed to a record.

Ramco Systems will implement its next-gen Aviation Software at Fly Vaayu.

Fly Vaayu, which is part of the UAE-based Vaayu Group, is a cargo airline based out of Ras Al Khaimah.

With modules for CAMO, Maintenance Planning, Line Maintenance, Supply Chain Management, and Finance & Accounting, Ramco Aviation Software will provide Fly Vaayu with an integrated platform that will streamline its operations, enhance process efficiencies, and improve productivity.

Tata Power has embarked on a data-driven transformation with Amazon Web Services (AWS) to accelerate the country’s transition to a greener, smarter, and more consumer-centric energy ecosystem.

The Sensex was down 208.68 points or 0.27 percent at 75,730.50, and the Nifty was down 36.65 points or 0.16 percent at 22,896.25. About 2354 shares advanced, 1009 shares declined, and 117 shares unchanged.

The Board has shown its willingness to accept the proposal from the Department of Fertilizers for becoming part of the proposed joint venture company, with 18% equity, for setting up a new Ammonia-Urea Complex at the Namrup IV fertilizer plant in Namrup, Assam.

Radico Khaitan is set to expand the footprint of Royal Ranthambore Whisky with its introduction in the Canteen Stores Department (CSD), the company stated in an exchange filing.

The stock has declined 16.4 percent in three sessions. It was also the top Nifty Smallcap loser in early trade.

The Sensex was down 201.90 points or 0.27 percent at 75,737.28, and the Nifty was down 36.50 points or 0.16 percent at 22,896.40. About 2268 shares advanced, 990 shares declined, and 132 shares unchanged.

The Supreme Court has quashed the demand order of Rs 186 crore for the pre–Corporate Insolvency Resolution Process (CIRP) period raised by the Income Tax Department on the company.

The transport infrastructure consultancy has signed a Memorandum of Understanding (MoU) with the Central Water and Power Research Station (CWPRS) to collaborate on engineering consultancy services and research & development projects in water resources, marine, and inland waterways infrastructure.

JBM Auto share price under pressure on February 20 after ending 14 percent higher on Wednesday after it's subsidiary JBM Ecolife Mobility bagged mega Rs 5,500-crore order under PM eBus Sewa Scheme-II. These e-buses will be deployed in around 19 cities across Gujarat, Maharashtra and Haryana.

#1 Start of new 5 mtpa regas capacity at Dahej should add to EBITDA (by June 2025)

#2 Summer demand for power should support LNG imports seasonally

#3 Completion of tariff renegotiation with GAIL/IOCL/BPCL can remove overhang

The Sensex was down 271.61 points or 0.36 percent at 75,667.57, and the Nifty was down 60.85 points or 0.27 percent at 22,872.05. About 2089 shares advanced, 977 shares declined, and 134 shares unchanged.

A meeting of the Board of Directors of the company will be held on February 25, 2025 to consider and approve the un-audited standalone and consolidated financial results for the second quarter ended September 30, 2024; and un-audited standalone and consolidated financial results for the third quarter ended December 31, 2024.