Market flat on F&O expiry, Nifty's 29-year low amid valuation concerns

The domestic benchmark indices Sensex and Nifty closed largely unchanged on Thursday as positive momentum in financial and banking stocks was offset by weakness in the automobile sector. According to information, Nifty50 is experiencing its longest losing streak in 29 years, declining for five consecutive monthly F&O expiry sessions. At close, the Sensex was up 10.31 points or 0.01 percent at 74,612.43, and the Nifty was down 2.50 points or 0.01 percent at 22,545.05.
According to financial experts, lowering the risk weight on bank loans to NBFCs from 125 percent to 100 percent is likely to reduce capital pressure on banks. This decision, effective April 1, reverses the restrictive policy introduced in November 2023, aiming to support credit growth in the NBFC sector.
Shriram Finance, Bajaj Finance, Bajaj Finserv, Sun Pharma, Hindalco Industries were the top gainers on the Nifty, while losers included UltraTech Cement, Trent, Jio Financial, Bajaj Auto and Tata Motors. On the sectoral front,except bank and metal, all other sectoral indices ended in the red auto, media, energy, capital goods, realty, power down 1-2 percent.BSE Midcap index shed 1 percent, and smallcap index fell 2 percent.
Rupee Close:
On 27 Feb'25,the Indian rupee depreciated 2 paise to close at 87.21 against US dollar as a muted trend in domestic markets and persistent foreign fund outflows weighed on investor sentiments.Forex traders reportedly stated the latest tariff announcements from the US have sent shockwaves through global markets, strengthening the dollar. Moreover, month-end dollar demand also boosted the American currency.
Expert Outlook:
Vinod Nair, Head of Research, Geojit Financial Services reportedly quoted as saying,domestic equity main indices remained largely unchanged due to optimism in the financial sector supported by the RBI’s decision to ease lending norms for microfinance institutions and NBFCs.Global market swayed negatively, and domestic broader market sentiment remained weak due to fresh uncertainty surrounding US tariff policies. Amid ongoing trade tensions, investors are also keeping a close watch on US and domestic GDP data for further indications of economic strength. 

(Business Correspondent)