According to BoFA Survey, India is now the second least favoured Asian stock market. And as we end the week, domestic markets witnessed disappointing ending with both the Sensex and Nifty showcasing decline in early trade. To look at the trajectory, the S&P BSE Sensex was down 443.21 points to 75,292.75 at 10:18 am while the NSE NIFTY50 toppled 143.75 points to trade at 22,769.40. Since the beginning of 2025, we are witnessing a significant exodus of foreign investors and muted earnings growth; dragging the Nifty 50 to the lowest level in eight months. Let’s dive more into the weekly market outlook (13th-21st February 2025):

Sensex, Nifty, and Share Prices Updated on February 17, 2025

On Monday, stock markets snapped an eight-day losing streak, with the benchmark Sensex closing up 57 points on value buying in blue-chip stocks HDFC Bank and Reliance Industries. The 30-share BSE Sensex rose 57.65 points, or 0.08 percent, to settle at 75,996.86. During the day, the barometer dropped 644.45 points, or 0.84 percent, to 75,294.76. The NSE Nifty rose 30.25 points, or 0.13 percent, to 22,959.50. Bajaj Finserv, Power Grid, IndusInd Bank, Adani Ports, UltraTech Cement, HDFC Bank, Zomato, and Tata Motors were among the top gainers among the 30 blue-chip stocks. Mahindra & Mahindra, Bharti Airtel, Tata Consultancy Services, Infosys, ICICI Bank, and ITC were the major laggards. Foreign portfolio investors (FPIs) sold equities worth ₹4,294.69 crore on Friday, as per exchange data.

“By the end of the 14 February 2025 session, FIIs had sold Indian stocks worth over ₹29,000 crore whereas the DIIs had bought Indian shares worth over ₹26,000 crore in the cash segment. This clearly indicates that DIIs are not in a mood for bottom fishing, which we witnessed post-Covid,” said Anshul Jain, Head of Research at Lakshmishree Investment and Securities.

Sensex, Nifty Updates on February 18, 2025

Equity benchmarks closed marginally lower on Tuesday after a volatile session, with the Sensex falling 29.47 points, or 0.04 percent, to 75,968, and the Nifty 50 falling 14.20 points, or 0.06 percent, to 22,945.30, as gains in IT stocks were offset by weakness in the auto and consumer goods sectors. The market remained resilient, recovering from early lows, but persistent foreign fund outflows and a weakening rupee weighed on sentiment. The broader markets underperformed significantly, with the Nifty Smallcap falling 1.6% and the Midcap down 0.2%.

"The domestic market has seen both profit-booking and bottom-fishing amid ongoing concerns about FII outflows and INR pressure. Small and mid-cap stocks continue to underperform due to concerns about premium valuations. Meanwhile, India's trade deficit has exceeded expectations," highlighted Vinod Nair, Head of Research at Geojit Financial Services.

Sensex, Nifty Updates on February 19, 2025

The benchmark indices Sensex and Nifty fell marginally in volatile trading on Wednesday, dragged by blue-chip IT stocks. The 30-share BSE benchmark Sensex fell 28.21 points, or 0.04 percent, to end at 75,939.18. Intraday, it fluctuated by 757.2 points between 76,338.58 and 75,581.38. The NSE Nifty fell 12.40 points, or 0.05 percent, to 22,932.90. Tata Consultancy Services and Infosys both fell by more than 2% on the Sensex. Hindustan Unilever, Bharti Airtel, Sun Pharma, Power Grid, Bajaj Finserv, HCL Tech, Mahindra & Mahindra, and Tech Mahindra were all among the laggards. Zomato was one of the gainers, rising nearly 5%. Larsen & Toubro, Axis Bank, ICICI Bank, IndusInd Bank, and Kotak Mahindra Bank all made gains.

“The Nifty is now trading at a 1YF P/E of 19.3x, near its 10Y LTA. The savage correction in SMIDs has derated the Nifty MidSmallcap400 Index P/E to 30.1x (TTM), below LTA of 37.9x; individual mid and small-cap indices are trading below the LTA. The median PER of the SMID index has also fallen by 8.8% since 30-Sep-2024 to 30x. The percentage of BSE-500 stocks trading below 30x PER (TTM) has increased, from 30.4% on 30-Sep-2024 to 39.4% after the correction,” said Seshadri Sen, Head Of Research & Strategist at Emkay Global Financial Services.

Sensex, Nifty Updates on February 20, 2025

The benchmark indices Sensex and Nifty fell for the third day on Thursday, as fresh tariff threats, weak Asian markets, and foreign fund outflows weighed on investors' sentiment. The 30-share BSE Sensex fell 203.22 points, or 0.27 percent, to settle at 75,735.96. During the day, it dropped 476.17 points, or 0.62 percent, to 75,463.01. The NSE Nifty fell 19.75 points, or 0.09 percent, to 22,913.15. Selling in frontline stocks such as HDFC Bank and ICICI Bank dragged down the key indices.

“Amid fear of trade war due to Donald Trump's tariff policy, US banks are flying gold worth billions of US dollars to New York, which has triggered a buzz that the US may impose a tariff on gold export from Europe. This has triggered buying in gold; hence, investors are switching positions from equities to gold. This is also a reason for continued selling in the Indian stock market,” said Avinash Gorakshkar, Head of Research at Profitmart Securities.

Sensex, Nifty Updates on February 21, 2025

During Friday afternoon trading, Indian equity benchmarks continued to fall, with the BSE Sensex falling 491 points (0.65%) to 75,244 and the NSE Nifty falling 148 points (0.65%) to 22,765. Market breadth remained negative, with 2,002 declining stocks and 1,752 advancing ones. The Nifty is currently testing critical support at 22,800, with further support expected at 22,700 if the selling pressure continues. Metal stocks, led by Hindalco and Tata Steel, showed resilience in a broadly bearish market, while sectors such as automobile and IT saw significant selling, with Mahindra & Mahindra leading losses at 5.51%. Rising Brent crude prices and ongoing US inflation issues have heightened investor concerns. Foreign institutional investors sold equities worth ₹3,312 crore in the previous session, leading to cautious market sentiment as trading continued.

“Several factors contributed to the market downturn, with sentiment particularly rattled by US President Donald Trump’s announcement of reciprocal tariffs on US trading partners,” said Puneet Singhania, Director at Master Trust Group.

Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates said that technically, on the daily chart, Nifty has formed a small red candle, while on the weekly scale, it has formed a doji candle, indicating uncertainty. However, Nifty Smallcap 100 and Nifty Midcap 100 indices formed green candles on the weekly chart, indicating strong demand. Despite global market turbulence, Nifty successfully defended the 22,725 support, reinforcing a strong demand zone around 22,700. The 21-Day Simple Moving Average (DSMA) at 23,200 remains an immediate hurdle, and a decisive move above this level could trigger fresh bullish momentum.

“Similarly, Bank Nifty opened with a gap down, witnessed selling pressure, and concluded the session lower at 48,981. On the daily chart, Bank Nifty has formed a red candle, while on the weekly scale, it has formed a small green candle, reflecting indecisiveness. Bank Nifty is currently consolidating within the 48,500-49,650 range, and a breakout on either side will determine the next directional move. Traders should closely watch these levels for potential trading opportunities," highlighted Hrishikesh.