Global Uncertainty, FII Selling Pressure Weigh on Markets

Indian equity markets opened sharply lower on February 24mirroring a global downturn driven by U.S. economic concerns, inflationary pressures, and renewed trade tensions. The BSE Sensex plunged 690 points (0.9%) to 74,619while the Nifty 50 slipped 205 points (0.9%) to 22,590with heavy losses in banking, IT, and mid-cap stocks.

Foreign Institutional Investors (Fiis) have offloaded Indian equities worth ₹36,977 crore so far in Februarywhile Domestic Institutional Investors (DIIs) have stepped innet buying shares worth ₹42,601 crorepartially offsetting the selling pressure.

Market Performance & Key Losers

• Sensex: Down 690 pointstrading at 74,619
• Nifty 50: Slips 205 pointsnow at 22,590
• BSE Midcap Index: Falls 1.6%
• BSE Smallcap Index: Declines over 2%
• Nifty IT Index: Worst-performing sector, down 2%dragged by Infosys and TCS

On the Nifty 50top laggards included:
TCS, Trent, Shriram Finance, Wipro, and HCLTecheach dropping 2-3%

Meanwhile, top gainers included:
Maruti Suzuki, BPCL, Sun Pharma, M&M, and Dr. Reddy’srising 0.5-1%

NTPC Green Energythe newly listed subsidiary of NTPCsaw its stock plunge 8%extending losses for a second session as the expiry of its three-month shareholder lock-in period triggered selling.

What’s Driving the Market Sell-Off?

1. U.S. Market Slump and Inflation Concerns

• U.S. consumer sentiment hit a 15-month lowraising concerns about weakening demand.
• Inflation expectations surgedwith fears that the Federal Reserve may not cut interest rates soon.
• Trade tensions resurfaced due to Donald Trump’s proposed tariffsadding further pressure.

2. Heavy FII Selling in Indian Markets

• Foreign investors have sold ₹36,977 crore worth of Indian equities this monthshifting focus to Chinese markets.
• The “Sell India, Buy China” trend continues as Chinese stocks appear more attractive in the short term.

3. Sector-Specific Weakness in IT and Banking

• Nifty IT plunged over 2%with Infosys and TCS leading the decline amid stagflation fears in the U.S.
• Banking and financial stocks struggledreflecting concerns over slowing earnings growth.

Technical Outlook: Nifty in a Crucial Support Zone

Market analysts indicate that Nifty’s recent failures to cross 23,000 decisively have put the index in a critical support range of 22,700-22,400.

Key resistance levels:
23,000-23,150 – 20-day exponential moving average (DEMA)
23,300-23,350 – Upper band of the wedge pattern

A break above 23,350 could restore investor confidencewhile further downside risks remain if support levels fail.

What’s Next for Indian Markets?

While short-term uncertainty prevails, long-term investors may find opportunities in large-cap stocks, particularly in financials.

According to VK Vijayakumar, Chef Investment Strategist at Geojit Financial Services:

With U.S. rate cut expectations in fluxIndian equities remain at the mercy of global macroeconomic trends and FII sentiment. The coming sessions will be crucial in determining whether Nifty can hold its key support levels or see further downside pressure.