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Market Update

* Equity benchmarks ended sharply lower, with the NIFTY 50 falling over 1% to settle below the 24,500 mark and the BSE Sensex plunging more than 1,000 points. The sell-off was largely driven by heavy losses in IT stocks amid rising worries about AI-led disruption.

* Investor sentiment was further weighed down by crude oil prices climbing to nearly a seven-month high above $71 per barrel, along with growing global trade tensions after the US imposed a fresh 15% tariff. The decline was broad-based, with IT stocks emerging as the worst hit. The NIFTY IT index slumped 5%, marking its lowest level since July 2023. Shares of Tata Consultancy Services, Infosys, Persistent Systems, KPIT Technologies, HCL Technologies, and Tech Mahindra declined between 3% and 8%.

* Other sectoral indices — including auto, pharma, private banks, defence, capital goods, as well as mid- and small-cap stocks — also fell by up to 2%. In contrast, the NIFTY Metal index rose nearly 1% on bargain buying. Notably, the Nifty had gained around 1% during the February series expiry.

* At the close, the Sensex tumbled 1,068 points, or 1.2%, to finish at 82,225, while the Nifty dropped 288 points, or 1.1%, to end at 25,424 compared with the previous session. Market breadth remained weak, with the Nifty 500 advance-decline ratio at 1:2, underscoring widespread and aggressive selling pressure.

* Globally, US markets declined about 1.5% overnight to hit nearly a one-month low, while Asian and European markets showed mixed performance amid renewed concerns about the outlook for AI and software companies. Additionally, US President Donald Trump’s decision to introduce a broad-based import levy further heightened global trade uncertainty.

TechnicalOutlook:

* Nifty index opened negative and witnessed profit booking right from the first tick and fell throughout the day. It broke the recent band low and touched low of 25327 zones after which it slightly recovered towards the end. It formed a bearish candle on the daily frame and wiped off the gains of the previous couple of sessions and closed with losses of around 290 points. Now till it holds below 25500 zones, weakness could be seen towards 25300 then 25200 zones while hurdles are placed at 25550 then 25650 zones.

* S&P BSE Sensex index opened on a negative note near 83000 mark and bears took control from the very first tick. The index witnessed intense selling pressure for most of the session with every minor bounce being sold into highlighting strong bearish dominance. The index declined sharply towards 81900 zones where it found some support and staged a mild relief bounce in the latter part of the day. It closed with losses of around 1070 points and formed a bearish candle, signalling continued pressure. Now till it holds below 82500 zones weakness could be seen towards 82000 then 81700 zones while hurdles have shifted lower to 82500 then 82800 zones.

DerivativeOutlook:

* Nifty future closed negative with losses of 1.10% at 25423 levels. Positive setup seen in Torrent Pharma, AU Bank, Cummins India, Jindal Steel, Marico, Canara Bank, Titan, Axis Bank, Indian Bank and CG Power while weakness in Persistent, TECHM, Eternal, Infosys, Paytm, UPL, Dixon, CDSL, Naukri and Syngene.

* On option front, Maximum Call OI is at 25500 then 26000 strike while Maximum Put OI is at 25500 then 25000 strike. Call writing is seen at 25500 then 25600 strike while Put writing is seen at 25000 then 25500 strike. Option data suggests a broader trading range in between 25000 to 25800 zones while an immediate range between 25200 to 25600 levels.

Today’s News

* Suzlon Energy - Company’s board has approved appointment of Ajay Kapur as group chief executive officer starting Feb. 24. Kapur retired as Managing Director of Ambuja Cements effective Jan. 31.

* Mobikwik gets BSE nod for stock broking business. - Company announced that its wholly-owned subsidiary, One MobiKwik Systems, has received approval from the Bombay Stock Exchange (BSE) to commence its stock broking business

* Adani Power in Pact to Supply 558MW to Tamil Nadu - Company has received a letter of award from Tamil Nadu Power Distribution Corp. to supply 558 MW of power for five years. Company was lowest bidder in the tender with a tariff of Rs5.910 per unit.

* Cochin Shipyard, HD Hyundai near $500 million JV - In the first instance of a global shipbuilding giant investing directly in core shipbuilding infrastructure in India, state-run Cochin Shipyard and South Korea’s HD Hyundai Group—are in final stages of forming a joint venture to set up a $500mn manufacturing facility in Kochi.

* Shree Cement - Company has commissioned the clinkerization section of its integrated cement plant being set up in the Kalaburagi district of Karnataka. The clinkerization section has a capacity of 3.65 million tons per annum (MTPA), taking its total clinker capacity at Kodla to 7.15 MTPA.

* Larsen & Toubro - Company has won a significant order from India’s Department of Atomic Energy to build a Laser Interferometer Gravitational Wave Observatory in the state of Maharashtra orders of Rs1000cr – Rs2500cr.

* Eris Lifesciences and Natco Pharma partner to sell Semaglutide in India - Eris Lifesciences partnered with Natco Pharma to commercialize Semaglutide in India. The tie up aims to leverage Eris’s diabetes franchise and commercial reach with Natco’s manufacturing and regulatory capabilities in complex formulations.

Global Market Update

* European Market - European stocks fell as President Donald Trump’s new 10% global tariffs came into effect, adding to investor uncertainty amid mixed earnings reports. UK, Germany and France Index declined 0.3% each.

* Asian Market - Asian stocks showed resilience after US peers witnessed another selloff on AI disruption fears, as investors snapped up shares of the region’s tech hardware companies — particularly semiconductor makers. Japan, Taiwan, China and South Korea index gained up to 2.5%.

* US Data - Non-Manufacturing Activities and House Price Index.

* Commodity - Oil climbed 1% to nearly $72/bbl as investors weighed the odds of an Iranian nuclear deal, after US President Donald Trump said he preferred a diplomatic solution but warning of consequences if an agreement wasn’t reached.

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