Markets continue to fall for fourth day dragged by auto stocks, foreign fund outflows

Weak U.S. markets and tariff threats also dented investor sentiment. File
| Photo Credit: Reuters

Equity benchmark indices Sensex and Nifty ended lower on Friday (February 21, 2025), dragged by auto stocks and relentless foreign fund outflows.

Weak U.S. markets and tariff threats also dented investor sentiment.

The 30-share BSE benchmark Sensex dropped 424.90 points or 0.56% to settle at 75,311.06. During the day, it tanked 623.55 points or 0.82% to 75,112.41.

The NSE Nifty declined 117.25 points or 0.51% to 22,795.90.

In four trading days, the BSE bellwether gauge tumbled 685.8 points or 0.90% while the Nifty declined 163.6 points or 0.71%.

From the Sensex pack, Mahindra & Mahindra tanked over 6%.

Adani Ports, Tata Motors, Sun Pharma, Power Grid, Zomato, ICICI Bank, State Bank of India and UltraTech Cement were also among the laggards.

Tata Steel, Larsen & Toubro, HCL Tech, Asian Paints, HDFC Bank and NTPC were among the gainers.

“A combination of negative factors such as relentless FII selling, falling rupee, expensive valuations and the U.S. threat of reciprocating tariff levies continue to drive investors away from Indian equities. In fact, local benchmarks under-performed both Asian and European indices, which logged significant gains. Barring metals, the slump in domestic markets was led by weakness in banking, IT, telecom, auto, realty and oil & gas shares,” Prashanth Tapse, Senior VP (Research), Mehta Equities Limited, said.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹3,311.55 crore on Thursday (February 20, 2025), according to exchange data.

The domestic market continued to exhibit broad-based weakness, primarily influenced by investor concerns over the hawkish tone of the FOMC minutes, which signalled prolonged higher interest rates that could constrain liquidity in emerging markets, Vinod Nair, Head of Research, Geojit Financial Services, said.

“Although the market has undergone a healthy correction, the uncertainties surrounding the gradual recovery of corporate earnings and ongoing tariff-related risks continue to cast doubt on valuation levels, particularly in the broader market. India is currently lagging behind its Asian peers, as FII outflows remain high, with the “sell India, buy China” strategy continuing to yield returns for the time being,” he added.

In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong settled in the positive territory. European markets were quoting mostly higher. U.S. markets ended lower on Thursday (February 20, 2025).

Global oil benchmark Brent crude dipped 0.59% to $76.05 a barrel.

The Sensex dropped 203.22 points or 0.27% to settle at 75,735.96 on Thursday (February 20, 2025). The Nifty dipped 19.75 points or 0.09% to 22,913.15.