Stock market today: AU Small Finance Bank, Hindustan Construction Company (HCC), BEML, Bharat Heavy Electricals Limited (BHEL), DB Realty, Godrej Consumer Products, Balaji Amines, INOX India, Karnataka Bank, Vakrangee, and Zydus Lifesciences hit their 52-week lows in intraday trade on BSE on Wednesday, February 19, on the backdrop of conflicting global signals and uncertainties regarding the US tariffs that were revealed by President Donald Trump.
Electrosteel Castings, Grindwell Norton, Dish TV, PVR Inox, Kajaria Ceramics, Jai Corp, Varun Beverages, Route Mobile were also among the stocks that reached their lowest levels in a year.
The Indian markets experienced another tumultuous session as the significant sell-off observed at the market’s opening on Wednesday, February 19, was swiftly countered, enabling the Sensex and Nifty 50 to bounce back from initial losses and finished flat.
The Sensex fell by 28.21 points, or 0.04%, closing at 75,939.18. The Nifty 50 dropped 12.40 points, or 0.05%, finishing at 22,932.90.
This rebound was primarily fueled by advancements in the financial sector, which helped to balance out the declines witnessed in the pharma and IT industries, each encountering challenges for various reasons. Analysts indicate that uncertainties surrounding tariffs have led investors to pivot toward financial stocks.
The market experienced significant intra-day movement, particularly in the broader markets where Midcap stocks outperformed the benchmarks, with the Midcap index increasing by 1.5% compared to a flat close for Nifty 50. Most major banking stocks finished the day near their peak levels. The Nifty Bank surged by 483 points, reaching 49,570, while the Midcap index climbed 776 points to settle at 50,527. Defence stocks, including BEL, Mazagon, and Garden Reach, attracted buying interest and became the top gainers.
Prashanth Tapse, Senior Vice President of Research at Mehta Equities, noted that volatility and fluctuations have become the standard at Dalal Street. He questioned whether Nifty 50 and its stocks would ever escape from this state of uncertainty. Tapse pointed out that the primary focus this week will be on the significant event of the FOMC minutes scheduled for release on Wednesday, February 19th.
He further explained that the FOMC minutes are expected to indicate a hawkish stance from the Federal Reserve, reinforcing the reduced expectations for interest rate cuts this year.
Nifty 50 Outlook
According to Rupak De, Senior Technical Analyst at LKP Securities, the Nifty 50 has moved within a band, keeping the volatile vibe intact. On the lower end, 22,800 is likely to remain crucial support. Until 22,800 is broken, we do not expect a significant fall in the market. A decisive fall below 22,800 might trigger a meaningful correction. However, until that happens, we believe the market is likely to remain range-bound. On the higher end, 23,000/23,150 might act as resistance for Nifty 50. A decisive breakout above 23,150 could induce a significant rally in the market.
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