Sensex, Nifty Trade Lower Amid Global Concerns; Realty Stocks Gain
Indian equity markets are trading in negative territory, with the S&P BSE Sensex and Nifty 50 showing minor losses on February 20, 2025. Investor sentiment remains cautious due to global uncertainties, particularly concerning U.S. trade policies. Despite the overall market weakness, realty stocks continue to rise, extending their gains for the fourth consecutive session.
Market Performance
Earlier in the day, at 9:20 AM IST, the Sensex declined by 290 points (0.4%) to 75,650, while the Nifty lost 65 points (0.3%) to 22,867. By 2:50 PM, the Nifty was trading below the 22,950 mark as the selling pressure persisted. Investors are reacting to multiple global and domestic factors that are influencing market movements.
Factors Affecting the Market
One of the primary concerns for investors is the recent announcement by U.S. President Donald Trump regarding new tariffs. The proposed 25% tariffs on automobile, semiconductor, and pharmaceutical imports have raised concerns about inflation and trade disruptions. Given India’s strong pharmaceutical exports to the U.S., this sector has been particularly affected.
Additionally, the minutes from the U.S. Federal Reserve’s January policy meeting have indicated ongoing concerns about inflation. There are speculations about potential interest rate hikes, which could reduce the attractiveness of emerging markets like India for foreign investors. As a result, market participants are adopting a wait-and-watch approach before making major investment decisions.
Sectoral Performance
Despite the weak overall market sentiment, the real estate sector continues to perform well. Realty stocks are advancing for the fourth straight session, driven by strong demand expectations and positive investor sentiment in the sector. Analysts suggest that favorable policy support and rising homebuyer interest are keeping the realty sector resilient amid broader market volatility.
On the other hand, sectors with significant exposure to the U.S., such as pharmaceuticals and information technology, are under pressure. Investors fear that prolonged trade uncertainties could impact these companies’ earnings in the coming quarters.
Market Outlook
Analysts expect volatility to persist in the near term as global economic and policy developments unfold. While strong domestic fundamentals may provide long-term support to Indian markets, near-term fluctuations will likely depend on global risk factors, foreign investor activity, and domestic economic data.
In summary, while Sensex and Nifty are struggling due to global uncertainties, real estate stocks continue to shine, proving sectoral strength despite broader market challenges.
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