Mumbai, February 12 - The Indian stock market experienced its sixth consecutive day of losses, with the Sensex dropping 122 points due to persistent foreign fund outflows and escalating trade war anxieties. The 30-share BSE Sensex closed at 76,171.08, a decrease of 0.16 percent, after an intra-day plunge of over 900 points. The NSE Nifty also declined by 0.12 percent to 23,045.25, marking its sixth straight day in the red. (Source: Text 1, Text 2)
The market's bearish trend is partly attributed to investors' cautious sentiment ahead of PM Modi's meeting with Donald Trump, with potential trade implications looming large. Concerns over Trump's tariffs, including the removal of duty exemptions on steel imports effective March 12, 2025, add to the uncertainty. From February 5th to 12th, the Sensex has plummeted by 3.07 percent, while the Nifty 50 has shed 2.92 percent.
Analysts suggest that the market's direction hinges on maintaining levels above 22950/75500, with potential for a rebound to 23200-23250/76700-76800. Conversely, a fall below these levels could trigger further selling pressure, potentially retesting the 22800/75000 level. Investors are advised to exercise caution and adopt a hedged approach amidst persistent selling by FIIs and uncertain global cues. (Source: Text 2)
The outcome of the Modi-Trump meeting is anticipated to be a crucial factor influencing market sentiment. The market volatility is expected to remain high due to the uncertainty surrounding tariffs and earnings. The analyst maintained Nifty Dec -25 target of 25000. He said, for sector positioning - we retain our tilt toward consumption and add our weights on Consumer Discretionary (CD), which is our preferred route to play the consumption theme. Incremental growth is sharpest for these sectors and valuations are still reasonable.