The market started strong. There was optimism in the air.
But by afternoon, sentiment shifted.
Sensex falls 400 pts from day’s high, Nifty below 25,550 — and investors were left wondering what changed within a few hours.
Let’s break it down clearly. No noise. Just facts.
Market Performance
On February 20, benchmark indices opened firm and climbed nearly 0.8% in early trade.
Then profit booking kicked in.
At 1:16 pm:
- Sensex was up 238.15 points (0.29%) at 82,736.29
- Nifty was up 94 points (0.37%) at 25,548.35
But from the day's peak, the Sensex fell 400 pts, while Nifty slipped below 25,550.
Intraday High Levels
- Sensex high: 83,132.08
- Nifty high: 25,663.55
Market Breadth
- 1,800 shares advanced
- 1,897 shares declined
- 174 shares unchanged
Breadth was almost evenly split. That tells you something. The rally wasn’t broad-based strength. It was fragile.
Sector-Wise Action: Metals Shine, IT Slips
While the headline read Sensex falls 400 pts from day’s high, Nifty below 25,550, sectoral moves told the real story.
Gainers in Nifty 50
Metal stocks held firm:
- Hindalco Industries: up nearly 3%
- Tata Steel: up nearly 2%
- JSW Steel: up nearly 2%
Financials also supported the market:
All up around 1% each.
Other steady performers:
- Hindustan Unilever
- Larsen & Toubro
- Bharat Electronics
Up 1–2%.
IT Stocks Under Pressure Again
The real drag came from IT.
The IT pack slipped for the third straight session.
Key laggards:
- Tech Mahindra
- Infosys
- HCL Technologies
- Wipro
Each down around 1%.
The broader picture matters here.
- Nifty IT index down nearly 2.5% this week
- Likely sixth straight week of losses
- Longest losing streak in almost four years
That kind of sustained weakness weighs heavily on sentiment. Especially in heavyweights.
Broader Market: Mixed Signals
Midcaps showed resilience.
- Nifty Midcap indices up 0.3–0.4%
- Nifty Midcap 150 up nearly 0.2%
One stock stood out:
- Apar Industries: up nearly 5%
Smallcaps were divided:
- Nifty Smallcap 50 up 0.1%
- Nifty Smallcap 150 & 250 down nearly 1%
This is typical during caution-driven sessions. Selective buying. No aggressive risk-taking.
Why Sensex Falls 400 Pts From Day’s High, Nifty Below 25,550?
The trimming of gains wasn’t random. There were clear triggers.
1️ Geopolitical Tensions Raise Risk Premium
Global cues shifted tone.
US President Donald Trump warned Iran to make a deal over its nuclear program within 10–15 days.
The response from Tehran hinted at retaliation if attacked.
Markets dislike uncertainty. Especially geopolitical uncertainty.
Oil Reacted Immediately
- Brent crude rose to $71.87 per barrel
- Three-day gain extended to 6.6%
For India, this is critical.
India is the world’s third-largest crude oil importer.
Higher oil prices:
- Increase import bill
- Pressure inflation
- Weigh on currency
- Tighten liquidity expectations
It all flows into equities eventually.
2️ Institutional Selling Adds Pressure
On February 19:
- FIIs sold Rs 880 crore
- DIIs sold Rs 596 crore
Both major institutional categories were net sellers.
That matters.
When global and domestic institutions sell together, markets struggle to sustain intraday rallies.
3️ Rupee Weakness
The rupee was trading at:
- 90.95 per US dollar
- Down 28 paise
Previous close: 90.6675
Currency trading had been shut earlier due to a Mumbai holiday, but when markets reopened, weakness was visible.
A softer rupee adds to risk perception. Especially when crude is rising.
4️ IT Selloff Extends
Another key factor behind Sensex falls 400 pts from day’s high, Nifty below 25,550 was the IT segment.
Stocks like:
- Persistent Systems
- Infosys
- Mphasis
Fell 1.2%–2.6%
With Nifty IT down nearly 2.5% this week, the drag was visible on frontline indices.
Markets move on leadership. Right now, IT isn’t leading.
5️ India VIX Spikes 7.65%
Volatility is the silent signal.
- India VIX jumped 7.65%
- Reached 14.49
A rising VIX signals nervousness.
Traders reduce aggressive exposure.
Short-term players book profits faster.
That’s exactly what happened today.
What This Session Really Tells Us?
Here’s the bigger picture.
The market was not collapsing.
But it was cautious.
Earlier gains of nearly 0.8% were trimmed because:
- Oil prices climbed
- Institutional selling continued
- Rupee weakened
- IT stocks dragged sentiment
- Volatility index surged
This combination made traders lighten positions at higher levels.
So when we say Sensex falls 400 pts from day’s high, Nifty below 25,550, it is more about profit protection than panic.
Summary
Let’s recap clearly.
Key Numbers
- Sensex high: 83,132.08
- Nifty high: 25,663.55
- Sensex fell 400 pts from peak
- Nifty slipped below 25,550
- FIIs sold Rs 880 crore
- DIIs sold Rs 596 crore
- Brent crude: $71.87
- India VIX: 14.49 (up 7.65%)
- Rupee: 90.95 per dollar
The day started strong.
But geopolitics, crude prices, IT weakness, and volatility kept gains in check.
Markets are reacting faster to global risks now.
For now, the phrase remains the headline:
Sensex falls 400 pts from day’s high, Nifty below 25,550 — amid oil surge, rupee weakness and IT drag.
Source: Moneycontrol
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