MUMBAI, February 27 — Sensex and Nifty slide sharply in Friday’s session as heavy selling pressure across sectors pushed the BSE Sensex down nearly 500 points, while the NSE Nifty50 traded close to the 25,300 mark amid weak global cues.
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The BSE Sensex was down approximately 500 points, reflecting a decline of around 0.60%, during mid-session trade. Meanwhile, the NSE Nifty50 slipped near 25,300, marking a decline of over 100 points, according to exchange data.
The downturn followed negative cues from global markets and sustained foreign institutional investor (FII) selling activity.
Sensex and Nifty Slide as Global Markets Weaken
The Sensex and Nifty slide came after weakness in Asian and US markets weighed on investor sentiment. Major Asian benchmarks, including Japan’s Nikkei 225 and South Korea’s Kospi, traded lower, while US technology stocks faced pressure in the previous session.
Market participants cited subdued global risk appetite as a primary driver behind domestic selling.
Foreign Institutional Investors continued to offload equities in the cash market, adding to downward pressure. According to provisional data released by the National Stock Exchange of India, overseas investors remained net sellers in recent sessions.
Sectoral Performance and Broad-Based Decline
The decline was broad-based, with most sectoral indices trading in negative territory. Banking, financial services, capital goods, and auto stocks contributed to the fall.
Midcap and smallcap indices also registered declines, underperforming the frontline benchmarks during the session.
Among major losers on the Nifty50 were select cement, financial, and healthcare counters, which fell up to 2% in intra-day trade. Only a handful of information technology stocks showed relative resilience.
The Sensex and Nifty slide reflected widespread caution across sectors rather than stock-specific weakness.
Volatility Indicator Signals Rising Nervousness
The India VIX, published by the National Stock Exchange of India, rose nearly 3%, indicating increased market volatility and cautious positioning by traders.
Options data suggested heightened hedging activity, reflecting short-term uncertainty in market direction.
Market breadth remained negative on both the Bombay Stock Exchange and the National Stock Exchange of India, with declining stocks significantly outnumbering gainers.
Background: External and Domestic Triggers
Global equity markets have faced pressure in recent sessions amid concerns over US economic data and technology stock volatility.
Domestic markets mirrored this weakness, with investors reacting to global macroeconomic developments.
Additionally, geopolitical developments and international trade discussions continued to influence risk sentiment globally.
The Sensex and Nifty slide also followed a phase of consolidation in previous sessions, where indices struggled to sustain upward momentum.
Authority View and Market Commentary
According to analysts cited in the Moneycontrol report, weak global cues and sustained FII selling were among the key factors behind the market decline.
Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, said the absence of strong domestic triggers has resulted in range-bound trading with elevated volatility.
The commentary highlights that global market movements continue to significantly influence Indian equities.
Market Reaction and Investor Positioning
Investors trimmed positions in rate-sensitive and cyclical sectors, leading to intraday weakness across large-cap stocks.
The broader equity market witnessed profit-booking amid limited buying support from domestic institutions.
While frontline indices declined sharply, defensive sectors saw comparatively lower losses.
The Sensex and Nifty slide underscores the market’s sensitivity to external developments and capital flows.
Closing Snapshot
By late morning trade, the BSE Sensex remained lower by nearly 500 points, while the NSE Nifty50 hovered close to 25,300, reflecting continued selling pressure.
Sectoral indices largely traded in the red, and volatility indicators remained elevated.
Market participants will monitor global developments and institutional activity for further directional cues.