Dalal Street Closes Weak: Sensex at 81,287, Nifty at 25,178; Auto, Financial Stocks Drag Markets

Indian equities wrapped up the February 27 session on a weak note, with both benchmark indices registering losses of over 1% amid sustained selling pressure across key sectors.

The S&P BSE Sensex fell sharply by 961.42 points to settle at 81,287.19, reflecting heavy profit-booking in frontline stocks. The NSE Nifty50 mirrored the decline, dropping 317.90 points to close at 25,178.65. The downturn was primarily driven by losses in auto and financial counters, which bore the brunt of the sell-off.

Market heavyweight Reliance Industries was among the key drags on the indices, amplifying the pressure on both the Sensex and Nifty. However, information technology stocks provided some relief, managing to close higher after recent corrections and limiting deeper losses.

Global Uncertainty Keeps Traders Cautious

Investor sentiment remained fragile throughout the day due to weak global market cues and escalating geopolitical concerns. Ongoing tensions in the Middle East and the lack of progress in U.S.-Iran nuclear negotiations added to risk aversion, prompting traders to pare exposure in rate-sensitive and cyclical sectors.

According to Vinod Nair of Geojit Investments Limited, markets are consolidating as global macroeconomic uncertainties overshadow domestic factors. With the earnings season nearing completion, global developments are taking precedence in shaping short-term direction.

Focus Shifts to GDP Data

Foreign institutional investors stayed on the sidelines, contributing to muted trading volumes. While selective buying interest emerged in technology names, overall market momentum remained subdued.

Participants are now eyeing India's upcoming Q3 GDP data for fresh triggers. A stronger-than-expected growth print could provide near-term stability to the Sensex and Nifty, though volatility is likely to persist.

Despite the steep fall, the absence of panic selling suggests that investors are adopting a cautious yet measured approach, balancing global headwinds against domestic economic fundamentals.