India's stock market swings as domestic buyers counter foreign sell-offs
Indian stock markets displayed mixed movements in the third week of February. While foreign investors withdrew funds, domestic buyers stepped in to balance the pressure. The Nifty and Sensex fluctuated amid global tensions and shifting trade policies.
On February 19, the Nifty closed near 25,454, dropping 1.41 per cent due to weak global cues and sector-specific declines. The next day, selective buying in certain stocks pushed the index closer to 25,600. Meanwhile, the Sensex recovered from the 82,000-82,500 range and ended the session in positive territory.
Foreign institutional investors (FIIs) sold shares worth nearly Rs 7,000 crore in the cash market during the week ending February 20. In contrast, domestic institutional investors (DIIs) pumped in over Rs 8,000 crore, offsetting some of the selling pressure. Analysts noted that the Sensex has strong support between 82,000 and 81,800, with resistance likely near 83,500-84,000.
Market volatility is expected to persist in the short term. The Nifty may find support around 25,300, while resistance could hold near 25,700. Adding to the uncertainty, the US Supreme Court recently struck down broad 'reciprocal' tariffs under IEEPA, capping India's tariff exposure at 15 per cent. This decision may impact sectors like textiles, pharmaceuticals, gems, and machinery, depending on future trade adjustments.
Global developments continue to shape investor sentiment. While former US President Trump had previously announced plans to reduce tariffs on Indian goods, no official response from Indian authorities has been reported yet.
The stock market remains sensitive to foreign fund flows and trade policy shifts. With DIIs countering FII outflows, the indices have held key levels for now. Short-term movements will likely depend on global cues and domestic buying patterns.
