Sensex, Nifty Down for 8th Session, Broader Markets Fall 3% - Know Key Details

The Indian benchmark indices ended in red for the eighth consecutive session on February 14 for the first time in two years amid weak Q3 earnings and heightened FII outflows. Even optimism surrounding easing Russia-Ukraine tensions, delay in U.S. tariff imposition until April, positive U.S. producer data and hopes of tariff negotiations between PM Narendra Modi and U.S. President Donald Trump couldn’t do enough to wean off negative market sentiments.

Sensex closed by 199 points or 0.3 percent at 75,939, while Nifty tumbled 102 points or 0.4% at 22,929. Close to 642 shares advanced, 3200 shares declined and 73 remained unchanged. Nifty is currently down by 13% from its all-time high, while Sensex declined 12% 12% from its peak.

Investors remained cautious ahead of the implications of reciprocal U.S. tariffs, despite Modi’s offer to discuss easing tariffs, buying more U.S. oil and gas, combat aircraft, and concessions.

The broader markets took a heavy blow wherein BSE Midcap and BSE Smallcap indices fell over 3% each. The smallcap index is down by about 21% from its December record high, while midcaps slumped by 19.5% below their highest recorded in September.

The market capitalisation of BSE-listed companies fell below ₹400 lakh crore for the first time since June 2024.

Gaurang Shah, Senior Vice President at Geojit Financial Services said, “The market sentiment is largely driven by foreign institutional investors (FIIs), who have been net sellers since last October.”

In January 2025, FIIs sold Indian equities to the tune of ₹87,374 crore, and so far in February, they have sold shares worth ₹24,888 crore. “However, the good part is that the selling pressure from FIIs is relatively lower than last year. We’ll have to wait and see when this stops.”

While having a look at the broader markets, Shah pointed out that valuations still appear overvalued despite the correction in small caps. “Secondly, earnings haven’t caught up with the current market valuations. In the mid-cap space, one needs to be very sector-specific in selecting investments.”

All 13 major indices ended the session in red, wherein Nifty Energy, Media, PSU Bank, and Pharma fell in the range of 2-3%. Financials fell by over 1% after the apex court dismissed review petitions filed by telecom companies seeking to overturn the earlier order on the calculation of dues.

Among the laggards, Bharat Electronics, Adani Enterprises, Trent, Adani Ports, and Sun Pharma fell by 3-4%, while Britannia, ICICI Bank, Nestle, Infosys, and TCS emerged as the top gainers growing between 0.7-1%.