Stock market: How Nifty 50 is likely to perform in short-term? Key levels to watch

Indian stock market: Domestic equity benchmarks, Sensex and Nifty 50, continued their downward trend for the fourth consecutive session, registering weekly losses. The decline was driven by weakness in auto, banking, and pharma stocks amid concerns over the impact of US trade policies, a weaker rupee against the dollar, and persistent foreign fund outflows. On February 21, 2025, the key indices closed at their lowest levels since early June.

Last week, the Sensex recorded a decline of 628.15 points (0.82%), while the Nifty slipped by 133.35 points (0.58%). Across four trading sessions, the Sensex lost 685.8 points (0.90%), whereas the Nifty fell by 163.6 points (0.71%).

“As the week concluded on February 21, the Sensex and Nifty faced selling pressure, primarily driven by weakness in auto and financial stocks. A sharp sell-off on Wall Street, concerns over potential disruptions from Trump’s proposed tariffs, persistent U.S. inflation, and the Federal Reserve’s cautious stance on rate cuts continued to weigh on investor sentiment,” said brokerage firm Choice Broking in a note.

Foreign Institutional Investors (FIIs) have been aggressive sellers, offloading Indian equities worth ₹33,527 crore so far this month. Renewed interest in rebounding Chinese stocks has led to a shift in global allocations, further impacting domestic equities.