Indian equity indices ended with no change in the muted session on February 27 (F&O expiry day). At close, the Sensex was up 10.31 points or 0.01 percent at 74,612.43, and the Nifty was down 2.50 points or 0.01 percent at 22,545.05.
On the back mixed global cues, the Indian indices opened marginally higher and traded in a range throughout the session amid selling across the sectors barring metal and banking names.
The non-banking financial companies rallied after the Reserve Bank of India (RBI) announced a relaxation in risk weights on bank lending to the sector.
The central bank’s move to lower the risk weight on bank loans to NBFCs from 125 percent to 100 percent. The decision, which takes effect from April 1, reverses a tightening measure imposed in November 2023 that had increased capital requirements for banks lending to NBFCs.
Shriram Finance, Bajaj Finance, Bajaj Finserv, Sun Pharma, Hindalco Industries were among major gainers on the Nifty, while losers were UltraTech Cement, Trent, Jio Financial, Bajaj Auto and Tata Motors.
Except bank and metal, all other sectoral indices ended in the red auto, media, energy, capital goods, realty, power down 1-2 percent.
BSE Midcap index shed 1 percent, and smallcap index fell 2 percent.
More than 460 stocks touched their 52-week low on the BSE, including GNFC, PVR INOX, Finolex Cables, Havells India, JBM Auto, Varun Beverages, GE Shipping, MMTC, Titagarh Rail Systems, Fine Organics, GSFC, Network 18, Sun TV Network, Chennai Petro, Tanla Platforms, Gujarat Gas, Shree Renuka Sugars, Adani Green Energy, Elgi Equipments, among others. Click here to view more
Outlook for February 28
Aditya Gaggar Director of Progressive Shares
Indian equities started the monthly expiry trade with a positive momentum but struggled to maintain gains as the day progressed. The Index remained rangebound due to lack of follow-through momentum, ultimately closing at 22,545.05 with a marginal loss of 2.50 points.
On the sectoral front, Metal and BankNifty stocks stood out as the best performers, while Media and Realty sectors lagged. Midcap and Smallcap indices underperformed by correcting 1.14% and 1.64%, respectively, compared to the frontline indices.
From a technical perspective, the levels for Nifty50 remained unchanged, with support at 22,400 and resistance at 22,720. The overall trend continues to be bearish.
Rupak De, Senior Technical Analyst at LKP Securities
Nifty remained range bound during the day before closing flat. Sellers continued to dominate the market at higher levels. On the lower end, 22,500 continues to act as support, similar to how 22,800 did a few days ago.
We expect Nifty to decline towards 22,200 and lower if it falls below 22,500. On the higher end, 22,650 might act as immediate resistance. In the short term, the index is likely to remain a "sell on rise" as long as it stays below the 22,750-22,800 range.
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