Stock Market Ends Lower as Pharma, IT Stocks Drag
On Wednesday, February 19, 2025, Indian stock markets closed on a mixed note, with benchmark indices ending slightly lower. The BSE Sensex slipped 28.21 points (0.04%) to settle at 75,939.18, while the NSE Nifty 50 dropped 12.40 points (0.05%) to close at 22,932.90. Despite a strong performance from the financial sector, losses in the pharmaceutical and IT sectors weighed on the indices.
Financial Stocks Provide Support
The financial sector helped limit the market’s losses. The Nifty Bank index rose 0.98%, closing at 49,570.10, driven by gains in leading banking stocks. Strong earnings reports and expectations of stable interest rates kept investor sentiment positive.
Pharma Sector Declines on Trump’s Tariff Threats
The pharmaceutical sector faced heavy selling pressure after U.S. President Donald Trump announced potential tariffs on pharmaceutical imports. The Nifty Pharma index fell 3.2%, with stocks like Aurobindo Pharma and Lupin suffering sharp declines.
The announcement raised investor concerns, as the U.S. is the largest market for Indian pharmaceutical exports. In FY24, India’s pharmaceutical exports to the U.S. stood at $8.73 billion, contributing nearly 31% of the industry’s total overseas sales. Any additional tariffs could negatively impact revenue and profitability for Indian drugmakers.
IT Sector Slumps Ahead of Fed Meeting Minutes
The IT sector also saw a downturn, as major stocks such as Tata Consultancy Services (TCS) and Infosys fell by 2% each. The Nifty IT index dropped 1.3% as investors remained cautious ahead of the release of the U.S. Federal Reserve’s January meeting minutes. The Fed’s stance on interest rates could impact global liquidity, influencing demand for IT services and outsourcing.
Mid and Small-Cap Stocks Outperform
Despite weakness in large-cap stocks, mid and small-cap stocks performed well. The Nifty Midcap 100 index rose 1.56%, while the Nifty Smallcap 100 index gained 2.36%, reflecting strong investor interest in smaller companies.
Market Outlook
Investors are closely watching global developments, including potential changes in U.S. trade policy and upcoming economic data releases. While pharma and IT stocks face pressure, the financial sector and midcap stocks continue to show resilience. In the near term, market movements are expected to remain uncertain, driven by global economic and policy updates.
