The Indian stock market closed Wednesday’s session, February 25, on a higher note, albeit with modest gains, as key indices erased most of their opening gains to settle near the day’s low. IT stocks saw a sharp relief rally after a brutal sell-off in the previous session triggered by AI disruption fears.
Metal and auto stocks also supported the indices, offsetting losses in PSU Bank and FMCG counters, with the Nifty 50 eventually settling 0.23% higher at the 25,482 level, while the Sensex remained largely unchanged at the 82,274 level.
The broader markets, however, outperformed the frontline indices, with the Nifty Midcap 100 surging 0.60%, while the Nifty Smallcap 100 index closed even higher by nearly 1%, indicating that the market breadth decisively turned in favour of the bulls.
Sector-wise, the Nifty Metal rose 2.7%, while the Nifty Auto and Nifty Pharma indices each closed 1.85% higher. After nearly a 5% crash in the previous session, improved sentiment drove bulls back to the IT sector, with the Nifty IT closing 1.57% higher. However, the index remains down 20% in February so far.
On the losing side, the Nifty PSU Bank fell 0.39%, while the Nifty FMCG index shed 0.25%.
Vinod Nair, Head of Research, Geojit Investments, said, “Indian markets opened with a gap‑up, driven by upbeat global cues and a rebound in U.S. tech stocks as AI‑related uncertainty eased. Additionally, dovish signals from the BoJ supported regional sentiment, keeping Asian markets firm. However, the initial strength tapered off as renewed tariff‑focused comments from the US president reignited global trade concerns, limiting the day’s gains with depreciation in INR.”
Looking ahead, geopolitical tensions such as U.S.–Iran developments, along with AI and tariff‑related news flow, are likely to shape market direction in the near term, he added.
Waaree Energies and Premier Energies crash on US tariff shock; Welspun down another 7%
Waaree Energies and Premier Energies were the biggest casualties, falling 10.4% and 6.1%, respectively, after the United States imposed preliminary duties on imports from India, Indonesia, and Laos — the latest in a decade-long series of levies on cheap Asian imports, as per news reports.
Welspun Living continued to remain under pressure, with the stock losing another 5.3% to ₹127, taking its week-to-date decline to 7% and erasing most of the gains accumulated earlier this month. Indian Railway Finance Corporation also came under pressure, with the stock falling 4.5% as the two-day offer for sale (OFS) by the central government opened today.
The government is looking to offload up to a 4% stake in the PSU railway stock via the OFS. Meanwhile, the sell-off in Firstsource Solutions showed no signs of easing, with the stock tumbling another 4% to ₹218.65, its lowest level since July 2024.
In February alone, the stock has lost 32% of its value, marking its biggest monthly drop since March 2020. Swan Corp was another top laggard in the Nifty 500 index, falling 3%.
Other stocks from the pack included Manappuram Finance, Newgen Software Tech, and Adani Power, all closing lower with losses of over 2.5%.
Metals roar, pharma and auto join the rally
Concord Biotech led the gainers’ list, with the stock rallying 14.4% to ₹1,230 apiece, while metal stocks such as Lloyds Metals & Energy and Jindal Saw finished the session higher by 7.5% and 7.1%, respectively.
Other stocks in the metal pack, such as National Aluminium, Vedanta, Hindustan Copper, Shyam Metalics and Energy, Hindustan Zinc, and Steel Authority of India, closed with gains between 3% and 5%.
Graphite India, too, ended the session with a sharp gain of 5.2% at ₹719.3 apiece. Meanwhile, auto and auto-ancillary stocks such as Usha Martin, Hero MotoCorp, and TVS Motor Company advanced 5%, 4.11%, and 3%, respectively.
In the pharma pack, Mankind Pharma, Laurus Labs, and Natco Pharma were among other gainers, rallying up to 5%. Overall, 25 constituents of the Nifty 500 closed with gains of over 3%.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
About The Author
