Nifty tanks below 22,600; metal stocks under pressure

The domestic equity indices traded with major losses in early afternoon trade, primarily driven by mixed global sentiment and a weak handover from the US markets. Concerns over Donald Trump's tariff policies and their potential impact on the US economy, along with reports of a new bat coronavirus strain in China and renewed tensions between Russia and Ukraine, weighed heavily on investor sentiment. The Nifty traded below the 22,600 level. Metal shares declined after advancing for the previous five consecutive trading sessions.

At 12:30 IST, the barometer index, the S&P BSE Sensex, tumbled 787.96 points or 1.05% to 74,523.66. The Nifty 50 index dropped 235.40 points or 1.03% to 22,560.50.

In the broader market, the S&P BSE Mid-Cap index shed 0.81% and the S&P BSE Small-Cap index slipped 0.72%.

The market breadth was weak. On the BSE, 1,243 shares rose and 2,558 shares fell. A total of 175 shares were unchanged.

Economy:

India's foreign exchange reserves snapped a three-week gaining streak to drop to $635.72 billion as of February 14, coming off over one-month highs, data released by the central bank on Friday showed.

Foreign currency assets, the largest component of forex reserves, dropped by $4.515 billion to $539.591 billion.

Gold reserves, however, saw a rise of $1.942 billion, reaching $74.15 billion during the week.

Meanwhile, special drawing rights (SDRs) increased by $19 million to $17.897 billion, and India?s reserve position with the International Monetary Fund (IMF) edged up by $14 million to $4.083 billion.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 0.61% to 14.62. The Nifty 27 February 2025 futures were trading at 22,616.10, at a premium of 55.6 points as compared with the spot at 22,560.50.

The Nifty option chain for the 27 February 2025 expiry showed a maximum call OI of 157 lakh contracts at the 23,000 strike price. Maximum put OI of 107 lakh contracts was seen at 22,600 strike price.

Buzzing Index:

The Nifty Metal index fell 1.48% to 8,482.50. The index advanced 3.60% in the past five consecutive trading sessions.

National Aluminium Company (down 3.71%), Steel Authority of India (down 3.2%), Vedanta (down 2.43%), NMDC (down 2.39%), Welspun Corp (down 1.77%), JSW Steel (down 1.75%), Hindalco Industries (down 1.71%), Jindal Stainless (down 1.56%), Ratnamani Metals & Tubes (down 1.45%), and Hindustan Copper (down 1.38%).

Stocks in Spotlight:

Oil India fell 2.85%. The company has announced that it has signed a memorandum of understanding (MoU) with Mineral Exploration and Consultancy (MECL) to collaborate in the exploration and development of critical mineral blocks both in India and overseas.

DIC India surged 11.10% after the company reported a net profit of Rs 7.15 crore in Q4 December 2024 as against a net loss of Rs 7.18 crore in Q4 December 2023. Net sales rose 6.97% year-on-year (YoY) to Rs 218.46 crore in Q4 December 2024.

Syngene International shed 0.87%. The United States Food and Drug Administration (USFDA) issued Form 483 with five observations to the company?s Bengaluru facility.

Balrampur Chini Mills shed 0.43%. The company has announced to set up a Polylactic Acid (PLA) biopolymer manufacturing unit at Kumbhi, Uttar Pradesh, with an investment of Rs 2,850 crore.

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