Final Trade: Markets tumble for 6th straight session; Nifty nears 23,050, Sensex closes 123 pts lower

The stock market witnessed another volatile session on February 12, as benchmark indices made a sharp intraday recovery but still ended in negative territory. The S&P BSE Sensex closed 122.52 points lower at 76,171.08 after plunging nearly 850 points earlier in the day. The Nifty 50 also pared most of its losses, finishing 26.55 points down at 23,045.25. Broader market indices followed a similar pattern, with midcap and smallcap stocks showing significant swings before closing marginally lower.

Market breadth remains weak despite late rebound

Despite the recovery, overall market sentiment remained subdued as selling pressure persisted across key sectors. The session opened on a weak note, extending the previous day’s downturn, with heavy losses seen in banking, auto, and power stocks. While the indices managed to claw back much of their losses, investors remained cautious amid global uncertainties and domestic valuation concerns. The market breadth remained negative, with more stocks declining than advancing.

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Top gainers and losers

Among the Nifty50 constituents, Bajaj Finserv, SBI Life, Shriram Finance, HDFC Life, and Tata Steel emerged as the top gainers, benefiting from selective buying interest in insurance and metal stocks. On the other hand, Mahindra & Mahindra (M&M), Eicher Motors, Bharat Electronics (BEL), Power Grid Corporation, and IndusInd Bank led the list of top losers, dragging down the indices. The auto sector in particular faced selling pressure amid concerns over future demand and rising input costs.

Global factors add to investor concerns

Market sentiment remained fragile, with global cues playing a key role in dictating investor behaviour. The US Federal Reserve’s cautious stance on interest rate cuts has dampened expectations of an early policy easing, leading to heightened caution in global equity markets. Additionally, concerns over the impact of metal tariffs imposed by the US further weighed on investor confidence.

Outlook: Consolidation phase may continue

Vinod Nair, Head of Research, at Geojit Financial Services, commented on the market outlook, stating that while the Indian market saw a slight recovery from sharp intraday declines, overall sentiment remained weak due to elevated valuations and lackluster Q3 earnings growth. He highlighted that concerns over excessive valuations are likely to sustain the ongoing consolidation phase. The upcoming US CPI inflation data release will be a crucial event that could influence market direction in the coming days. If inflation remains sticky, it could exert further pressure on investor confidence and delay any potential recovery in risk assets.

Investors remain cautious ahead of key data releases

With key macroeconomic data points lined up, including US inflation numbers and domestic industrial production figures, markets are expected to remain volatile. While strong corporate earnings could provide some support, the broader trend may remain weak unless fresh triggers emerge. Investors will closely watch policy cues from central banks and geopolitical developments that could impact global financial markets.