The Indian stock market faced significant losses in early afternoon trading, driven by global uncertainties and weak cues from U.S. markets. Investor sentiment was dampened by concerns over Donald Trump’s tariff policies, reports of a new bat coronavirus strain in China, and escalating tensions between Russia and Ukraine. As a result, the Nifty index slipped below the 22,600 mark, while metal stocks declined after five consecutive sessions of gains.
At 12:30 IST, the benchmark S&P BSE Sensex tumbled 787.96 points, or 1.05%, to 74,523.66. Similarly, the Nifty 50 index fell 235.40 points, or 1.03%, to 22,560.50.
Broader Market Performance
The downturn extended to the broader market as well, with the S&P BSE Mid-Cap index declining by 0.81% and the S&P BSE Small-Cap index slipping by 0.72%. Market breadth remained weak, with 1,243 stocks advancing, 2,558 declining, and 175 remaining unchanged on the BSE.
Derivatives Update
The NSE’s India VIX, which measures expected market volatility, rose by 0.61% to 14.62. The Nifty 27 February 2025 futures traded at 22,616.10, reflecting a 55.6-point premium over the spot price of 22,560.50.
Options data indicated strong resistance at the 23,000 strike price, with a maximum call open interest (OI) of 157 lakh contracts. On the downside, the 22,600 strike price held the highest put OI of 107 lakh contracts.
Sector in Focus: Nifty Metal Index
The Nifty Metal index dropped 1.48% to 8,482.50 after gaining 3.60% in the last five trading sessions. Major losers included:
- National Aluminium Company (-3.71%)
- Steel Authority of India (-3.2%)
- Vedanta (-2.43%)
- NMDC (-2.39%)
- Welspun Corp (-1.77%)
- JSW Steel (-1.75%)
- Hindalco Industries (-1.71%)
- Jindal Stainless (-1.56%)
- Ratnamani Metals & Tubes (-1.45%)
- Hindustan Copper (-1.38%)
Stocks in Spotlight
- Oil India fell 2.85% after announcing a memorandum of understanding (MoU) with Mineral Exploration and Consultancy (MECL) for mineral exploration and development in India and overseas.
- DIC India surged 11.10% after reporting a net profit of Rs 7.15 crore in Q4 December 2024, compared to a net loss of Rs 7.18 crore in Q4 December 2023. Revenue increased by 6.97% YoY to Rs 218.46 crore.
- Syngene International declined 0.87% following the issuance of Form 483 with five observations by the U.S. FDA for its Bengaluru facility.
- Balrampur Chini Mills slipped 0.43% after announcing plans to invest Rs 2,850 crore in a Polylactic Acid (PLA) biopolymer manufacturing unit in Kumbhi, Uttar Pradesh.
