The Indian stock market opened strong, with the SENSEX rising 232 points to an intraday high of 74,834 and the NIFTY50 gaining 66 points to reach 22,613.30 on the BSE. However, as volatility increased ahead of the monthly expiration of futures and options (F&O) contracts, the indices gave up gains.
Global markets weigh on investor sentiment
Asian markets traded lower, reacting to new US tariffs on European Union (EU) imports. Japan's Nikkei declined 0.1%, China's Shanghai Composite fell 0.4%, Hong Kong's Hang Seng lost 0.9%, and South Korea's KOSPI dropped 1%. These global concerns contributed to uncertainty in share market investment, impacting investor sentiment in India.
UltraTech Cement leads market losers
Among the NIFTY50 stocks, UltraTech Cement Limited faced the sharpest fall, dropping 5% to an intraday low of ₹10,415 per share. The stock reacted negatively to the company's announcement of entering the wires and cables business, which also impacted other wire-related stocks. Polycab India Limited and KEI Industries Limited were locked in a 10% lower circuit, further affecting share market investment sentiment in the infrastructure sector.
Other major laggards included Grasim Limited, Bajaj Auto Limited, Tren Limited, Hero MotoCorp Limited, Oil & Natural Gas Corporation Limited (ONGC), Bharat Petroleum Limited, Cipla Limited, and Power Grid Corporation Limited, weighing on the overall market performance.
Bajaj Finance Limited among the top gainers
On the positive side, Bajaj Finance Limited was among the top NIFTY50 gainers, rising 2.3% to hit a 52-week high of ₹8,683.95 per share. The stock surged following regulatory changes that lowered risk weights for bank lending to non-banking finance companies (NBFCs) and microfinance institutions. The decision boosted stocks such as Shriram Finance Limited, Cholamandalam Investment Limited, Muthoot Finance Limited, Bajaj Finserv Limited, and SBI Card, which gained between 2-5%, reinforcing optimism in share market investment.
Broader market and sectoral trends
The broader markets traded with a negative bias, as the NIFTY Smallcap100 declined 0.4%, and the NIFTY Midcap100 dropped 0.11%.
Among sectoral indices, 10 out of 19 were in the red, with consumer durables leading losses with a 1.2% drop. Auto, media, IT, real estate, and oil and gas sectors also declined. However, banks, financial services, metals, Public Sector Undertaking banks (PSUs), and private banks saw buying interest, providing some stability to share market investment.
Markets remain subdued amid expiry volatility
By 1:30 PM on February 27, 2025, the NIFTY50 had slipped to 22,533.5, down 14.2 points, while the SENSEX was up by only 4.5 points at 74,606.6. The market remained subdued, with overall market breadth negative. Basically, 2,145 shares were declining, while only 1,076 were advancing on the BSE. The expiry of February's F&O contracts added to the uncertainty, leading to cautious trading in share market investment. Investors were assessing global headwinds and domestic factors before making significant share market investment decisions.
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