Indian equity indices close flat as sectors diverge

by / ⠀News / February 28, 2025

Indian equity indices closed on a flat note on February 27, 2025. The Sensex was up 10.31 points or 0.01 percent at 74,612.43. The Nifty was down 2.50 points or 0.01 percent at 22,545.05.

Performance was mixed across sectors. The banking and metal sectors showed strength, while the auto, media, energy, and realty sectors dragged.

Market sentiment remained cautious before the derivatives expiry, leading to muted activity throughout the session. Shriram Finance, Bajaj Finance, Bajaj Finserv, Sun Pharma, and Hindalco Industries were among the major gainers on the Nifty.

UltraTech Cement, Trent, Jio Financial, Bajaj Auto, and Tata Motors featured among the top losers. All other sectoral indices ended in the red except for the bank and metal indices.

The auto, media, energy, oil & gas, capital goods, realty, and power sectors all saw declines ranging from 1-2 percent. Midcap and small-cap indices also underperformed, shedding 1% and 2%, respectively. Vinod Nair, Head of Research at Geojit Financial Services, said, “The flat closing result can be attributed to optimism in the financial sector, supported by the Reserve Bank of India’s decision to ease lending norms for microfinance institutions and NBFCs.

Sectoral divergence impacts equity performance

However, markets were negatively swayed globally due to fresh uncertainties surrounding US tariff policies.”

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Rupak De, Senior Technical Analyst at LKP Securities, mentioned, “Nifty remained range-bound throughout the day. Significant support for the index lies at 22,500; breaking this level could see the index falling to 22,200 or lower. Resistance is identified at 22,650.”

 

The Indian rupee ended flat at 87.19 per dollar.

This showed little change from the previous close of 87.20. Analysts attributed this stability to mixed domestic markets and sustained selling pressure from Foreign Institutional Investors (FIIs). As the derivatives series transitions, market experts mostly agree on a cautious outlook.

The focus remains on global economic indicators and policy updates, particularly from the US. Investors are also monitoring stock-specific opportunities in this volatile environment.

Image Credits: Photo by Joshua Mayo on Unsplash

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