Market Snapshot

The Indian equity benchmarks experienced one of their worst sessions in recent times as a wave of selling pressure swept across Dalal Street. The BSE Sensex plummeted by 1,068.74 points, or 1.28%, to settle at 82,225.92. Similarly, the NSE Nifty 50 declined by 288.35 points, or 1.12%, closing the day at 25,424.65. The market breadth was overwhelmingly negative, with nearly two stocks declining for every one that advanced.

• The Nifty IT index was the biggest laggard, crashing 4.74% to hit a 30-month low.
• Sectoral resilience was seen in the Nifty Metal index, which gained 1.36% to reach a fresh all-time high.
• Blue-chip stocks like Tech Mahindra, HCL Technologies, and Infosys led the losers' pack, while NTPC and JSW Steel managed to end in the green.

Institutional Flows: Cash Market

Provisional data for February 24, 2026, revealed a divergence in institutional activity. Foreign Institutional Investors (FIIs) turned net sellers, though their selling was relatively muted compared to the price action, while Domestic Institutional Investors (DIIs) stepped in aggressively to support the falling market.

• Foreign Institutional Investors (FIIs): Net sellers of ₹102.53 crore in the cash segment.
• Domestic Institutional Investors (DIIs): Net buyers of ₹3,161.22 crore in the cash segment.

Derivatives Market Activity

The volatility was exacerbated by the monthly expiry of February futures and options (F&O) contracts. Traders witnessed sharp swings as positions were rolled over or squared off amid a bearish global backdrop.

• The Nifty IT futures saw significant short build-up as investors reacted to global tech headwinds.
• The Put-Call Ratio (PCR) for the Nifty shifted lower, reflecting a cautious to bearish sentiment among option traders.
• High trading volumes were recorded in banking and IT heavyweights as institutional players adjusted their portfolios for the new series.

Key Drivers and Outlook

The primary catalyst for the market rout was the threat of renewed trade wars. US President Donald Trump’s announcement of a temporary 15% global tariff framework rattled export-oriented sectors. Additionally, the Indian IT sector faced a "perfect storm" following a viral research report suggesting that advancements in AI—specifically Anthropic’s new "Claude Cowork Agent"—could structurally disrupt India’s traditional labor-arbitrage model.

Geopolitical tensions also played a role, as escalating friction between the US and Iran pushed global crude oil prices higher, further denting the risk appetite of a net energy-importing nation like India. Looking ahead, the market is expected to remain volatile as investors await India's Q3 GDP data scheduled for release on February 27. Support for the Nifty is currently seen at the 25,300 level, while 25,700 remains a stiff resistance on the upside.

TAGS: FII, DII, Stock Market, Institutional Investors, Nifty, Sensex

Tags: FII DII Stock Market Institutional Investors Nifty Sensex