Indian Stock Market Update: Today, Friday, February 27th, proved to be a ‘Black Friday’ for the Indian stock market. Dalal Street witnessed a massive sell-off on the last trading day of the week, causing the major indices, Sensex and Nifty, to plummet by nearly 1.2%. This sudden market decline wiped out investors’ wealth by nearly ₹5 lakh crore in one fell swoop.
Weak signals from global markets and rising geopolitical tensions between Iran and the United States have completely soured market sentiment. Investors also appeared cautious and apprehensive about the third-quarter GDP figures to be released this evening, further increasing selling pressure.
Where did today’s decline end
The market started sluggishly this morning, but selling intensified in the afternoon session, causing the Sensex to plunge more than 1,000 points. At the end of trading, the Sensex fell 961.42 points to close at 81,287.19, while the Nifty 50 also recorded a significant decline of 317.90 points, closing at 25,178.65.
Technically, the Nifty broke its 200-day moving average today, which is considered a major concern for market experts. The 25,000 level will now serve as a strong psychological support for the Nifty, while a strong resistance or obstacle could be seen around 25,350.
Why did the market crash
Several global and domestic factors are responsible for this significant market decline. News of the collapse of nuclear talks between the US and Iran has escalated tensions in the Middle East, pushing crude oil prices above $72. Continuous selling by foreign institutional investors has also put pressure on the Indian market.
Globally, a sharp decline in shares of US tech giant Nvidia has sparked fears in IT sectors worldwide, which had a direct impact on the Indian markets. Furthermore, investors were risk-averse ahead of India’s GDP data, leading to profit-booking across the board.
Today’s Top Gainers and Losers
The market witnessed widespread selling today, with almost every sector trading in the red. Among Nifty stocks, major names like Adani Enterprises, Maruti Suzuki, Bharti Airtel, and Sun Pharma were among the top losers, falling up to 2.5%. On the other hand, select stocks like Trent and Infosys managed to recover with modest gains in this declining environment.
Redington shares surged nearly 15% today after a positive statement from Apple CEO Tim Cook, the only positive development in the market. Weakness in the banking and auto sectors has also pushed Nifty Bank close to the crucial 60,000 level.