Stock market news: The domestic benchmark indices, Nifty 50 and Sensex, witnessed a decline on Friday, February 27, with losses widespread, primarily driven by the financial sector. This marked the third consecutive monthly decline for the benchmark indices, while IT stocks faced their worst month since September 2008 amid concerns that artificial intelligence might negatively impact their profits. For the month, the Nifty 50 decreased by 0.6%, and the Sensex fell by 1.2%.
On Friday, investors lost a total of ₹4.98 lakh crore as the markets suffered significant losses, with the Sensex dropping over 1%. This was largely due to fresh outflows from foreign funds and lackluster global market trends amid increasing geopolitical tensions.
The 30-share BSE Sensex fell by 961.42 points, or 1.17%, closing at 81,287.19. At its lowest during the day, it plunged by 1,089.46 points, or 1.32%, to reach 81,159.15.
In just one day, the market capitalisation of companies listed on the BSE decreased by ₹4,98,603.42 crore, bringing the total to ₹4,63,50,671.27 crore.
Among the sectoral indices, the real estate sector declined by 2.25%, telecommunications by 1.83%, automobiles by 1.81%, metals by 1.57%, commodities by 1.56%, FMCG by 1.52%, and financial services by 1.50%.
India’s GDP growth has decreased to 7.8% in the third quarter, down from an 8.4% increase in the previous quarter, attributed to a slowdown in government spending and investment, even though private consumption has risen significantly.
Market Outlook by Dharmesh Shah, Vice President, ICICI Securities
- Equity benchmark extended breather over third consecutive week while navigating through geopolitical as well as global uncertainties amid AI disruption. Nifty 50 lost 1.5% to settle the week at 25,179. Meanwhile, broader market shown remarkable resilience as Nifty midcap, small cap held their ground and settled on a flat note. Sectorally, Metal, Pharma remained in limelight while IT, realty continued to witness pressure.
- The lack of follow through strength resulted into extended correction. As a result, weekly price action formed a bear candle carrying lower high-low, indicating continuation corrective bias.
- In the upcoming truncated week, we expect prolongation of consolidation in the broader range of 25,800-24,900 while sailing through global volatility amid geopolitical jitters.
- The silver lining is that, the index took three weeks to retraced 61.8% of sharp up move (24,600-26,300) seen during early part of Feb on the backdrop of US-India trade deal. This healthy consolidation has helped index to form a higher base that has set the stage for next leg of up move.
- Past three week’s consolidation has been captured in a well-defined downward slanting channel. Thereby a decisive close above upper band of this channel (placed at 25,800) would be required to confirm change in trend and open the door for 26,300 in the coming month. Failure to do so would result into extended correction towards key support of 24,900.
- In the process, bouts of volatility would prevail that could offer incremental buying opportunity in the quality stocks backed by strong earnings. Hence, buy-on-dips strategy should be in focus as strong support is placed around 24,900 lower band of falling channel, coincided with 80% retracement of recent up move (24,572-26,341) and 52 weeks EMA.
- In tandem with the benchmark move, Nifty midcap, smallcap indices underwent healthy consolidation after bouncing back from their key support zone. The current up move is backed by the improvement in the market breadth which would provide cushion for broadening of rally going ahead.
Key monitorable:
- Brent crude would be the key monitorable going forward amidst renewed geopolitical tension, that pulled it around falling resistance trendline placed at $72 range. A decisive close above $72 would fuel the momentum for next leg of up move that can add pressure on emerging markets like India.
- Monthly Auto sales data.
Stocks To Buy This Week – Dharmesh Shah
Dharmesh Shah of ICICI Securities recommends buying Bharat Electronics Ltd (BEL), and Voltas Ltd.
1. Buy BEL in the range of ₹427-445. He said BEL share price target of ₹484 with a stop loss of ₹404.
2. Buy Voltas in the range of ₹1,518-1,562. He said Voltas share price target of ₹1,648 with a stop loss of ₹1,479.
Disclaimer: The Research Analyst or his relatives or I-Sec do not have actual/beneficial ownership of 1% or more securities of the subject company, at the end of 27/02/2026 or have no other financial interest and do not have any material conflict of interest.
The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
