Looking at the market’s movement in the morning, it seemed as if a new record was about to be set today. On February 25, Sensex and Nifty showed tremendous momentum in early trading, and investor enthusiasm was at its peak. But by afternoon, the atmosphere changed. As soon as high levels were reached, profit-booking started, and selling pressure outweighed the rally.
Consequently, the Sensex dropped about 700 points from its day’s high, while the Nifty also slipped from the crucial 25,500 level to close. However, some buying returned in the last hours, which slightly halted the decline, and the market managed to end the day’s trading with a marginal gain.
BSE Sensex finally closed with a marginal gain of 50.15 points at 82,276.07. Nifty 50 also climbed 57.85 points to reach the level of 25,482.50. However, during the day, the market touched much higher levels. Intraday, Sensex reached 82,957.91, while Nifty made a high of 25,652.6.
But these upper levels did not show sustainability, and rapid profit-booking began. Consequently, the market lost a significant portion of its gains. Broader market figures also indicate pressure—about 1,966 shares gained, while 2,064 shares declined. This clearly shows that despite appearing slightly strong on the surface, the underlying market weakness was more prevalent.
Which stocks supported the market?
Amidst sharp fluctuations, the Auto and IT sectors saved the market from a major decline. Bajaj Auto emerged as the biggest gainer, jumping nearly 3%. Additionally, Tata Steel, HCL Technologies, and Shriram Finance recorded gains of over 2%.
Buying was also seen in IT stocks. Tata Consultancy Services, Infosys, Wipro, and Tech Mahindra closed with gains of around 1%. In the Auto sector, Mahindra & Mahindra, Maruti Suzuki India, and Eicher Motors climbed 1-2%, providing support to the index.
Which stocks faced pressure?
On the other hand, some blue-chip stocks showed weakness. ITC, Kotak Mahindra Bank, and Tata Consumer Products closed down more than 1%. Bharti Airtel and Oil & Natural Gas Corporation also declined, which limited the market’s momentum.
Which stocks faced pressure?
While some sectors remained stable in the market, weakness dominated many blue-chip stocks. ITC, Kotak Mahindra Bank, and Tata Consumer Products closed down more than 1%. Additionally, selling pressure was observed in Bharti Airtel and Oil & Natural Gas Corporation (ONGC), which limited the market’s gains.
3 major reasons for the market decline
Profit-booking at upper levels:
After a rally of about 0.9% in the morning, investors started booking profits at higher levels. Nifty could not sustain above 25,800, which further intensified selling.
Selling by foreign investors:
Foreign Institutional Investors (FIIs) were net sellers once again. However, Domestic Institutional Investors (DIIs) tried to support the market to some extent through buying.
Weakness at technical levels:
According to market experts, the strength could not be sustained above 25,670. Now, 25,300 (Nifty) and 82,000 (Sensex) are considered important support levels. If these levels are breached, a deeper decline in the market could be observed.
