Markets Live: Indian indices opened on negative note on February 27 with Nifty around 17,400. Key indices Nifty50 declined over 50 points to trade below 17,400 levels, whereas the S&P BSE Sensex lowered over 300 points to trade around 59,151 levels.
Broader markets, too, inched lower as Nifty MidCap 100 and Nifty SmallCap 100 indices fell up to 0.4 per cent. Barring Nifty Pharma, and Nifty Realty indices, which held marginal, all other sectors plunged in the sea of red.
Among individual stocks, shares of SpiceJet gained over 1 per cent after the company reported a five-fold surge in net profit in December quarter of FY23.
Besides, shares of ABB India surged over 1 per cent after the company plans to invest Rs 1,000 crore in Indian business over the next five years.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “With FII selling gathering pace (Rs 3466 crores selling in the last 3 days) the market has turned distinctly weak. The global market construct too is unfavourable with sharp cuts in the US last Friday following the 0.6 per cent MoM inflation in the US in January. The rising US bond yields – the 10 year is at 3.93 per cent – and dollar index above 105 now are negative for EM equities. A data which is hugely significant from the Indian market perspective is the declining influence of Indian retail investors. In 2021 and 2022 sustained retail buying helped absorb FII selling and this kept the market resilient. But latest data shows that the number of retail clients are down by 38 lakhs in the last 6 months and the retail/ HNI share in daily volume is down to 44 per cent from the peak of 68 per cent. This means FII activity will have a disproportionate impact on markets. Since the Indian economy continues to be strong, investors can use weakness in the market to accumulate high quality stocks in banking, capital goods, IT, cement and across sectors.”
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