Stock market today: Sensex, Nifty 50 end volatile session flat; all eyes on Fed meet minutes | Stock Market News

Indian Stock Market: It was another volatile session for Indian markets as the sharp sell-off seen at the opening bell on Wednesday, February 19, was quickly bought into, helping the Sensex and Nifty 50 recover from early losses and close the session on a flat note.

The recovery was largely driven by gains in financial stocks, which offset declines in the pharma and IT sectors, as each faced pressure for different reasons. Analysts suggest that uncertainty regarding tariffs has prompted investors to shift towards banking stocks.

The Nifty 50 recovered 118 points during the day to close at 22,932, marking a minor decline of 0.05% compared to the previous close. Meanwhile, the Sensex gained 357 points from its low and ended the session with a marginal loss of 0.04%, closing at 75,939.

Twenty-five constituents of the Nifty 50 index ended in the green, with Bharat Electronics leading the gains, rallying 3.6%, followed by Hindalco Industries, Eicher Motors, and Larsen & Toubro, posting gains between 1.7% and 2.4%. On the flip side, Dr Reddy’s Laboratories and TCS were the top losers, declining by 2.6% and 2.3%, respectively.

The broader market performed well in today’s session, as investors seemed to find opportunities after stocks faced continued selling pressure in recent sessions. The Nifty Midcap 100 concluded the session with a gain of 1.56%, settling at 50,527, while the Nifty Smallcap 100 index finished at 15,525, gaining 2.36% compared to Tuesday’s closing level.

Prashanth Tapse, Senior VP (Research), Mehta Equities, said, “While markets ended flat with a slightly negative bias due to selling in IT stocks, broader markets witnessed a lot of optimism as mid- & small-cap stocks rallied after the recent selloff. Despite the uncertainty over rising FII selling, falling rupee, and the ongoing tariff war, the recently beaten sectoral stocks from banking, automobile, telecom, and metals attracted significant buying interest.”

As traders continue to monitor tariffs, their focus is now shifting to the Federal Reserve’s January meeting minutes, due on Wednesday, for clues on how policymakers view the growing risk of a broader trade war on economy.

Sectoral Performance: Realty shines, IT struggles

IT stocks witnessed selling pressure in today’s trade after French IT consulting firm Capgemini reported a weaker-than-expected financial performance for the full year 2024, while pharma stocks tumbled after U.S. President Donald Trump, on Tuesday, threatened to impose tariffs on drug imports.

Nifty IT emerged as the top sectoral laggard, dropping 1.26%, while the Nifty Pharma index declined by 0.70%. On the winning side, the Nifty Realty index jumped 1.67%, followed by Nifty Media with a gain of 1.33%. Nifty PSU Bank and Nifty Metal also ended the session with gains of 1.33% and 1.25%, respectively.

Commenting on today’s market performance, Vinod Nair, Head of Research, Geojit Financial Services, said, “The national benchmarks exhibited a range-bound performance with a slight downward bias, though selective buying in the broader market was evident, driven by bargain hunting in beaten-down stocks. A reversal in FII flows also influenced market dynamics; however, the durability of this trend remains uncertain.”

“Despite concerns over potential US tariff impositions and delays in anticipated interest rate cuts, market sentiment remains optimistic about a rebound in India’s Q3 GDP growth. This optimism is further bolstered by expectations of a recovery in government expenditure. At this juncture, large-cap stocks present a more attractive risk-reward proposition, given their fair valuations,” he added.

Technical Outlook

Rupak De, Senior Technical Analyst at LKP Securities, said, “The Nifty has moved within a band, keeping the volatile vibe intact. On the lower end, 22,800 is likely to remain crucial support. Until 22,800 is broken, we do not expect a significant fall in the market. A decisive fall below 22,800 might trigger a meaningful correction. However, until that happens, we believe the market is likely to remain range-bound. On the higher end, 23,000/23,150 might act as resistance for Nifty. A decisive breakout above 23,150 could induce a significant rally in the market.”

“Nifty 50 formed a small bull candle with a long upper shadow, signaling the continuation of consolidation for the third consecutive session. Over the past few days, the index has been trading within a broad range of 22,700–23,050. During this consolidation phase, dips toward 22,800–22,700 should be viewed as buying opportunities. A breakout above 23,050 would pave the way for further upside, towards the 20-day EMA placed around 23,200 levels,” said analysts at Bajaj Broking. 

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.