Indian Stock Market Remains Steady Amid Caution, NBFC Stocks Surge
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Synopsis
On February 27, the Indian stock market displayed a cautious attitude as investors kept trading within a narrow range. The Sensex and Nifty indices showed minimal changes while NBFC stocks experienced significant gains following RBI policy adjustments.
Key Takeaways
- Indian stock market showed cautious trading.
- Sensex and Nifty indices remained range-bound.
- Bajaj Finance and Bajaj Finserv led the gains.
- UltraTech Cement faced a notable decline.
- NBFC stocks surged after RBI policy changes.
Mumbai, Feb 27 (NationPress) The Indian stock market experienced a range-bound session on Thursday, with the benchmark indices trading within a limited spectrum as investors maintained a cautious approach.
The Sensex saw fluctuations, reaching a high of 74,834 and a low of 74,521 during intra-day trading, ultimately closing nearly unchanged at 74,612, with a modest gain of 10 points.
In a similar fashion, the Nifty operated within a 100-point band, peaking at 22,613 and dipping to 22,508, before concluding almost flat at 22,545 on its expiry.
Throughout the day, the Nifty remained range-bound before finishing flat. Sellers continued to exert pressure on the market at higher levels.
“On the lower end, 22,500 serves as a support level, just as 22,800 did previously. We anticipate a decline towards 22,200 or lower if it dips below 22,500,” commented Rupak De from LKP Securities.
Among the stocks in the Sensex, Bajaj Finance and Bajaj Finserv were the top performers, each rising more than 2 percent.
IndusInd Bank, HDFC Bank, Zomato, and Axis Bank also recorded gains exceeding 1 percent during the intra-day trading.
Conversely, UltraTech Cement faced a significant decline of nearly 5 percent following its announcement to enter the wires and cables sector.
Other notable decliners included Mahindra & Mahindra, Tata Motors, Tech Mahindra, HCL Technologies, Hindustan Unilever, and NTPC.
The broader market experienced selling pressure, with the BSE MidCap index down 1 percent and the SmallCap index declining over 2 percent.
Non-Banking Financial Companies (NBFCs) and Micro-Finance Institutions (MFIs) witnessed strong buying interest during the session.
Stocks such as CreditAccess Grameen, L&T Finance, and Mahindra & Mahindra Finance surged by up to 15 percent after the Reserve Bank of India (RBI) lowered risk weights on MFI loans and loans to NBFCs.
Investors remained uncertain regarding market direction, leading to subdued participation in equities.
The rupee traded flat around 87.17 after significant volatility, weakening to 87.54 before bouncing back to 87.10.
“The session concluded on a neutral note as the dollar index remained range-bound, and foreign institutional investor (FII) sell-offs were offset by domestic institutional investor (DII) inflows, helping stabilize the secondary markets,” remarked Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities.
He added that future movements of the rupee will be influenced by global cues, dollar trends, and fluctuations in oil prices.
