Nifty 50, Sensex fall for 4th day, shed 0.5% as bears continue to rule; auto, pharma stocks top drags | Stock Market News

Stock Market Today: The Indian stock market faced renewed selling pressure on Friday, February 21, as heavy losses in auto and pharma stocks dragged the frontline indices lower for the fourth consecutive session. For the week, both indices also ended in the red, marking their second consecutive weekly decline.

The Nifty 50 closed the session 0.51% lower and ended the week with a 0.58% decline at 22,795, while the Sensex dropped 0.56% today and fell 0.86% for the week, settling at 75,311. The Nifty Midcap 100 index ended the session with a 1.32% drop, closing at 50,486, while the Nifty Smallcap 100 index fell 0.70%, finishing at 15,636. However, both midcap and smallcap indices managed to close the week with gains.

Escalating global trade tensions continue to weigh on investor sentiment, prompting them to flee from risky assets towards safe havens such as gold.

US Federal Reserve officials have also expressed concerns about the tariffs, which they believe could put upward pressure on prices. Duties on incoming goods to the U.S. will raise domestic costs, forcing consumers to pay higher prices for the same products, potentially hindering the Fed’s efforts to bring inflation down to its 2% target.

Earlier this week, Donald Trump said he would announce fresh tariffs over the next month or sooner, adding lumber and forest products to previously announced plans to impose duties on imported cars, semiconductors, and pharmaceuticals.

Last week, Trump unveiled plans to levy reciprocal tariffs on all countries that impose tariffs on U.S. goods or implement non-tariff barriers restricting U.S. market access. Analysts warn that these levies could hamper key exports such as petrochemicals and pharmaceuticals, which account for about one-fifth of India’s exports to the U.S.

Experts believe that Trump’s strategy is to use tariff threats as a negotiation tactic to secure tariff reductions on U.S. exports.

Adding to geopolitical risks, reports suggested Trump might withdraw US support for Ukraine during negotiations with Russia, potentially sidelining Kyiv and its European allies.

Since assuming office last month, Trump has imposed a 10% tariff on Chinese imports, announced and later delayed 25% tariffs on goods from Mexico and non-energy imports from Canada, set a date for 25% tariffs on imported steel and aluminum, and is planning reciprocal tariffs on all countries, including India, that tax U.S. imports.

Sectoral Performance: Metals shine, auto stocks struggle

Indian auto stocks witnessed heavy selling pressure in today’s session, with the Nifty Auto index dropping 2.6% to a 10-month low of 21,505. Fourteen out of 15 constituents of the index ended the session in the red, with M&M emerging as the biggest laggard, falling 6%, followed by TVS Motor Company, Samvardhana Motherson, and Tata Motors, which closed with losses ranging from 2.5% to 4%.

Likewise, the Nifty Pharma index extended its losing streak to the fourth consecutive session, declining 1.92%. Other sectoral indices, such as Nifty PSU Bank, Nifty Realty, and Nifty Media, also ended the session with losses exceeding 1%. The only exception was the Nifty Metal index, which gained 1.02%.

Commenting on today’s market performance, Vinod Nair, Head of Research, Geojit Financial Services, said, “The domestic market continued to exhibit broad-based weakness, primarily influenced by investor concerns over the hawkish tone of the FOMC minutes, which signaled prolonged higher interest rates that could constrain liquidity in EMs.”

“Although the market has undergone a healthy correction, the uncertainties surrounding the gradual recovery of corporate earnings and ongoing tariff-related risks continue to cast doubt on valuation levels, particularly in the broader market. India is currently lagging behind its Asian peers, as FII outflows remain high, with the “sell India, buy China” strategy continuing to yield returns for the time being,” he added.

Technical Outlook

Rupak De, Senior Technical Analyst at LKP Securities, said, “Nifty fell, giving a bearish flag pattern breakdown on the hourly chart, suggesting a rise in bearishness among market participants. Additionally, Nifty has closed at a multi-day low amid increased bearish sentiment. The RSI (14) has entered a bearish crossover. On the lower end, a correction towards 22,500 looks possible in the short term, while on the higher end, 22,850 might continue to remain a strong resistance.”

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.