Indian Stock Market: SENSEX Drops 176 Points Amid Profit Booking

The Indian stock market continued its downward trend during afternoon trading on Thursday, February 26, erasing previous gains as investors opted to book profits amidst negative global indicators. The Bombay Stock Exchange's SENSEX dipped by 176.91 points or 0.21%, settling at 82,100.16, while the National Stock Exchange's NIFTY50 fell by 47.90 points or 0.19%, hovering around 25,434.60.

Despite a strong start to the day, sentiment quickly turned as the SENSEX reached an intraday low of 81,983.96. The NIFTY50 followed suit, hitting a session low of 25,400.95. Notably, foreign institutional investors (FIIs) acquired shares worth ₹2,991.64 crore in the preceding session, while domestic institutional investors (DIIs) made net purchases totalling ₹5,118.57 crore, according to data from the exchanges.

Several major companies influenced the indices' performance. Coal India recorded a decline of 1.87%, followed by Power Grid Corporation of India at 1.50%, and Tata Consumer Products at 1.25%. Conversely, the top gainers included Tata Motors, Max Healthcare Institute, and Bharat Electronics, showcasing some resilience in the market.

Shares of Welspun Corp surged by 4.23%, reaching an intraday peak of ₹831 on the National Stock Exchange. This increase followed the incorporation of its wholly owned subsidiary, Welspun International FZCO, in Dubai, aimed at enhancing global marketing efforts.

In a similar vein, Balu Forge Industries’ shares rose sharply by 10%, hitting ₹489.40 per share after announcing a Memorandum of Understanding (MoU) for the supply of military ammunition from its new manufacturing facility in Belgaum, Karnataka. The agreement encompasses a range of large calibre ammunition, aligning with the firm’s strategy to establish a stronghold in the defence sector.

Tejas Networks is also in the spotlight as it deepens collaboration with NEC Corporation for providing solutions in 5G technology, with potential benefits for the supply chain.

Market analysts have observed that the volatility reflects a broader context where investors are adjusting portfolios in response to fluctuating global conditions. In the face of uncertainty related to international trade policies and their impacts on sectors such as renewable energy, Indian companies are working to navigate these challenges. Waaree Energies, for instance, is optimistic about minimizing the effects of a new US countervailing duty on solar imports, given its diversified supply chain.

Meanwhile, shares of Manappuram Finance fell by 4.1%, influenced by news of the company's CEO's medical leave, which is expected to last from 90 to 120 days.

As the trading day progresses, market participants remain cautious, monitoring both domestic developments and international market trends closely, while seeking opportunities within the fluctuations of the current landscape.