The Nifty 50 and Sensex indices extended their losing streak on February 17, marking the ninth consecutive session of declines.
This continued slump is largely attributed to persistent foreign institutional investor (FII) sell-offs, a weakening rupee, and concerns over the impact of reciprocal tariffs on Indian exports imposed by US President Donald Trump.
Nifty 50’s longest losing streak since 2011
The Nifty 50’s current decline has now lasted for nine consecutive sessions, a losing streak last seen in May 2011.This marks one of the index’s longest periods of sustained losses, further dampening investor confidence.
With a lack of strong domestic triggers to drive market movement, investors are focusing on external factors such as global developments, currency fluctuations, and institutional investment trends for potential directional cues.
At 09:16 am, the Sensex was down 590.57 points or 0.78% at 75,348.64, while the Nifty 50 fell 196.15 points or 0.86% to 22,733.10.
A closer look at the broader market shows a wider sell-off, with the Nifty Smallcap 100 and Nifty Midcap 100 indices both plunging more than 2% at the opening.
Sectoral performance
All 13 sectoral indices opened in the red, with some sectors recovering slightly to trade with mild gains.The Nifty Realty, Nifty Auto, and Nifty Media indices experienced the most significant losses, falling between 1.5% and 2.5%.
Conversely, the Nifty Pharma and Nifty Media indices showed a more resilient performance, trading in positive territory.
Despite these losses, several positive developments may offer support to the market.
Easing geopolitical tensions surrounding the Ukraine-Russia conflict, cooling crude oil prices, a weakening dollar, and the growing expectation that the Reserve Bank of India might cut the benchmark lending rate during its April meeting provides some optimism.
Market capitalization drops to 8-month low
The ongoing sell-off has pulled India’s market capitalization down to its lowest level in eight months.The market capitalization of BSE-listed companies has dropped below Rs 400 lakh crore for the first time since June 2024, signaling a tough market environment.
Additionally, the earnings season for the quarter ended December 31, 2024, revealed disappointing results.
Analysts noted single-digit growth in profit after tax (PAT) for both the Nifty and BSE500 indices, leading to another round of downgrades, although not as severe as those seen in the September quarter.
Global market movements
On the global front, US markets showed resilience despite concerns over Trump’s tariffs.Wall Street came close to hitting a fresh record high, with the S&P 500 ending flat, the Nasdaq Composite gaining 0.4%, and the Dow Jones slipping by 0.4%.
Economic data from the US further pressured the dollar, with January retail sales reporting a sharp contraction of -0.9%, far exceeding the forecasted -0.1% decline.
In individual stock news, Mahindra & Mahindra (M&M) saw its shares fall 5% despite the overwhelming response to its new electric SUVs, the XEV 9e and BE 6.
M&M recorded an impressive 30,179 bookings on the first day, with a total booking value of Rs 8,472 crore (ex-showroom price).
Meanwhile, shares of liquor companies United Breweries (NSE:UBBW) and United Spirits (NSE:UNSP) dropped by up to 2% in opening trade following the government’s decision to reduce tariffs on US bourbon whiskies.
The new tariff structure imposes a 50% basic customs duty on bourbon, along with an additional 50% levy, making the total tariff 100%, still lower than the previous 150%.
As the market navigates these headwinds, investors will be closely monitoring both domestic and global developments for further signals on potential market direction.