Indian stock market tumbles as global tensions and weak earnings rattle investors

Indian stock markets faced a turbulent week as global trade tensions and US policy shifts weighed on investor sentiment. The Nifty 50 index dropped sharply, closing at 25,454 on February 19, a decline of 1.41 per cent from earlier levels. Meanwhile, conflicting moves by foreign and domestic investors added to the instability.

Between February 13 and 20, the market value of the top 50 Nifty stocks fell by roughly 5-7 per cent. The Nifty 50 index itself plunged from around 21,995 to 20,375, with IT and banking sectors bearing the brunt. Shares of Infosys and TCS dropped over 8 per cent due to a weak earnings forecast, while HDFC Bank lost 10 per cent amid regulatory worries.

Foreign institutional investors (FIIs) offloaded shares worth nearly Rs 7,000 crore in the cash market during the week ending February 20. This selling pressure was partly offset by domestic institutional investors (DIIs), who pumped in over Rs 8,000 crore. The Sensex, after dipping into the 82,000-82,500 range, managed to recover and close in positive territory.

Adding to the uncertainty, US President Donald Trump's remarks about exploring new legal avenues for tariffs unsettled global markets. However, the US Supreme Court's decision to strike down broad 'reciprocal' tariffs under IEEPA capped India's tariff exposure at 15 per cent. Analysts now expect volatility to persist in the near term, with Nifty finding strong support near 25,300 and resistance around 25,700. The Sensex, meanwhile, has support between 81,800 and 82,000, while resistance is seen near 83,500-84,000.

Market watchers suggest investors stay alert to global developments and upcoming corporate earnings. The mix of FII outflows and DII inflows, along with shifting trade policies, is likely to keep conditions unpredictable. For now, key support and resistance levels will guide short-term movements in both the Nifty and Sensex.