Mumbai, India: The Indian stock market remained largely flat on Thursday, February 27, 2025, as the Sensex settled marginally higher, while the Nifty 50 slipped below 22,550 amid F&O expiry. The BSE Sensex edged up by 10 points, closing at 74,612, while the NSE Nifty 50 remained nearly unchanged, settling at 22,545. The session was marked by gains in financial stocks following the Reserve Bank of India’s (RBI) decision to ease lending norms, contrasted by declines in the auto and cement sectors.
Sectoral Performance
Financial Sector Gains: The financial sector outperformed, buoyed by the RBI’s recent relaxation of capital requirements for microloans. This regulatory change led to notable gains in non-banking financial companies (NBFCs) and microfinance institutions.
- Shriram Finance: Shares surged by 5.18%.
- Bajaj Finserv: Increased by 2.40%.
- Bajaj Finance: Rose by 2.03%.
Automobile Sector Under Pressure: The auto sector faced headwinds, with major players witnessing declines due to profit booking and weaker sales projections.
- Bajaj Auto: Stock fell by 2.65%.
- Mahindra & Mahindra: Decreased by 2.08%.
- Tata Motors: Slipped by 2.09%.
Cement Sector Declines: UltraTech Cement experienced a significant drop of nearly 5% after announcing its entry into the wires and cables business. This strategic move raised concerns among investors about potential capital allocation risks, leading to a sell-off in the company’s shares.
Broader Market Indicators
The broader market indices reflected a bearish sentiment:
- BSE MidCap Index: Declined by 1%.
- BSE SmallCap Index: Saw a sharper drop of 2%.
Market breadth was negative, with a higher number of declining stocks compared to advancers.
Global Cues
As of 3:36 PM IST on February 27, 2025, Brent Crude prices were trading at $73.21 per barrel, reflecting a modest increase of 0.94%. Fluctuations in global oil prices continue to influence investor sentiment in the Indian markets.
Conclusion
The Indian stock markets remained largely flat during the session, with gains in the financial sector offset by losses in the automobile and cement sectors. Investors are advised to monitor sector-specific developments and global economic indicators closely, as these factors are likely to influence market trajectories in the near term.
