Dalal Street Sees Sharp Sell-Off; Nifty Crashes 300 Points, Sensex Down Over 1%

Market Update at 04:01 PM: On Friday, February 27, India’s key equity benchmarks, the Nifty 50 and the Sensex, ended sharply lower, falling over 1 per cent in a broad-based sell-off led by heavyweight financial stocks. Investor sentiment remained cautious amid uncertainty over Washington’s next course of action on Iran and ahead of key domestic GDP data.

After opening on a weak note, the Nifty 50 stayed under pressure throughout the session. Although the index traded largely flat during midday deals, showing limited directional movement, a sharp sell-off in the final 30 minutes dragged markets lower and erased earlier stability.

At the closing bell, the Nifty 50 declined 317.90 points, or 1.25 per cent, to settle at 25,178.65, slipping below its 200-day EMA. The Sensex fell 961.42 points, or 1.17 per cent, to close at 81,287.19, snapping a two-day winning streak. ICICI Bank and HDFC Bank emerged as the biggest drags on the indices. The Bank Nifty ended 1.08 per cent lower at 60,529.

On a weekly basis, the Nifty 50 dropped 1.54 per cent, while the Sensex fell 1.84 per cent.

Among sectoral indices, only two of the 11 key indices ended in positive territory. The Nifty IT index edged up 0.16 per cent on Friday; however, it has declined about 19.54 per cent in February and is on track for its worst monthly performance since the 2008 global financial crisis amid concerns over AI-led disruption.

Broader markets also remained under pressure. The Nifty Midcap index and the Nifty Smallcap 100 index closed down 1.10 per cent and 1.14 per cent, respectively.

The Nifty Media index emerged as the top sectoral gainer, ending 0.6 per cent higher. In contrast, the Nifty Realty index plunged 2.26 per cent and is trading near its 52-week low.

Investors are now awaiting India’s GDP data for the December quarter, due later in the day. The print will be the first under the new series, with the base year shifted to 2022-23 from 2011-12.

Market breadth remained negative. Out of 3,236 stocks traded on the NSE, 1,140 advanced, 1,992 declined, and 104 remained unchanged. A total of 56 stocks hit their 52-week highs, while 255 touched their 52-week lows. Additionally, 60 stocks were locked in Upper Circuits, whereas 68 stocks were locked in Lower Circuits.

Market Update at 2:28 PM: Indian benchmark indices pared early gains to trade marginally lower on Thursday, weighed down by media and fast-moving consumer goods (FMCG) stocks amid subdued global cues.

At 2 PM, the BSE Sensex was trading at 82,105.34, down 170.73 points or 0.21 per cent. The NSE Nifty50 quoted 25,438.25, lower by 44.25 points or 0.17 per cent.

Among the Sensex 30 stocks, Bharat Electronics Ltd. (BEL), Maruti Suzuki, Adani Ports, Sun Pharma and Infosys emerged as the Top Gainers. On the other hand, Trent, Power Grid, NTPC, Asian Paints and SBI were the notable laggards.

In the broader market, the Nifty Midcap 100 index gained 0.18 per cent, while the Nifty SmallCap index declined 0.27 per cent, indicating mixed sentiment beyond frontline indices.

On the sectoral front, Nifty Pharma led the gains, rising 0.6 per cent, followed by Nifty IT and Nifty Oil and Gas. Meanwhile, Nifty Media, FMCG, PSU Bank and Metal indices traded in the red during the session.

 

Market Update at 12:27 PM: Indian equity benchmarks extended losses on Friday as broad-based selling pressure outweighed gains in information technology stocks, with investors remaining cautious over Washington’s next course of action on Iran and awaiting key GDP data.

The Nifty 50 declined 0.82 per cent to 25,288.65, down 207.90 points, while the BSE Sensex fell 0.72 per cent to 81,659.50, shedding 589.11 points as of 12:14 p.m. IST on February 27, 2026.

Except for IT, all major sectoral indices traded in the red. Broader markets also mirrored the weakness, with the Small-Cap index falling 0.8 per cent and the Mid-Cap index declining 0.8 per cent.

The IT index rose 0.75 per cent on Friday. However, the sector remains under pressure, down about 19.1 per cent in February and on track for its worst monthly performance since the 2008 global financial crisis, as concerns over AI-led disruption continue to weigh on sentiment.

The ongoing selloff has limited gains in the benchmark indices this month. The Nifty has risen just 0.1 per cent in February, while the Sensex has declined 0.5 per cent.

Friday’s losses were driven by index heavyweights HDFC Bank and ICICI Bank, which dropped 1 per cent each, while Reliance Industries fell 0.5 per cent.

Meanwhile, oil prices eased from near seven-month highs after Washington and Tehran extended nuclear talks, easing immediate concerns of supply disruptions amid potential hostilities.

Market Update at 09:32 AM: The Indian stock market began Friday’s session on a muted note amid mixed cues from global peers. Benchmark indices opened slightly lower and extended losses in early trade.

The BSE Sensex opened around 30 points lower at 82,220 and soon slipped to an intra-day low of 81,883. At 9:20 AM, the Sensex was trading 273 points, or 0.35 per cent, lower at 81,975. The Nifty 50 index was down 85 points, or 0.33 per cent, at 25,411.

Among the 30 Sensex constituents, IT stocks witnessed buying for the third consecutive session. Infosys gained 3 per cent to trade at Rs 1,331. Tech Mahindra, HCL Technologies and TCS were up around 1 per cent each.

On the downside, Maruti Suzuki, Mahindra & Mahindra, Bharti Airtel, InterGlobe Aviation (IndiGo), Reliance Industries and Adani Ports declined over 1 per cent each, weighing on the benchmarks.

Pre-Market Update at 7:54 AM: The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Friday, tracking weak global cues. Asian markets traded mixed, while the U.S. stock market ended mostly lower overnight amid selling pressure in technology stocks.

As of 7:16 am, Gift Nifty was trading around the 25,561 level, down nearly 104 points from the previous close of Nifty futures, indicating a negative start for domestic equities.

Iran stated that nuclear negotiations with the U.S. moved forward “very intensely and very seriously” after a temporary pause in Switzerland. The third round of talks, mediated by Oman, began in Geneva on Thursday, signaling continued diplomatic engagement between the two nations.

On February 26, Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs 3,465.99 crore. Domestic Institutional Investors (DIIs) bought shares worth Rs 5,031.57 crore during the same session. FIIs have emerged as net buyers for February so far, with cumulative net buying of Rs 895.58 crore.

On Thursday, Indian markets ended a choppy session on a mixed note amid profit booking in select heavyweights. The BSE Sensex eased 27.46 points, or 0.03 per cent, to close at 82,248.61. The Nifty 50 settled 14.05 points, or 0.06 per cent, higher at 25,496.55.

The Securities and Exchange Board of India (Sebi) has revised valuation norms for physical gold and silver held by Mutual Fund schemes. Under the new guidelines, fund houses must use polled spot prices published by stock exchanges for valuation. The revised framework will come into effect from April 1, 2026.

The U.S. stock market closed mostly lower on Thursday, pressured by weakness in technology stocks after investors reacted cautiously to earnings from Nvidia.

The Dow Jones Industrial Average edged up 17.05 points, or 0.03 per cent, to 49,499.20. The S&P 500 fell 37.27 points, or 0.54 per cent, to 6,908.86, while the Nasdaq Composite declined 273.69 points, or 1.18 per cent, to 22,878.38.

Japan’s factory output rose 2.2 per cent in January from the previous month, missing the median estimate of a 5.3 per cent increase. A survey by the Ministry of Economy, Trade and Industry showed manufacturers expect seasonally adjusted output to decline 0.5 per cent in February and fall a further 2.6 per cent in March, indicating a weaker near-term outlook.

Gold prices steadied after the U.S. and Iran agreed to prolong nuclear talks. Spot gold was steady at USD 5,190 per ounce, while silver prices rose 0.62 per cent to USD 88.85 per ounce.

WTI crude oil futures steadied around USD 65 per barrel on Friday following a volatile session, as the U.S. and Iran agreed to continue nuclear negotiations next week.

For 27 February, Sammaan Capital remains on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.