With $500 Billion Trade Target in Sight, India and U.S. Push for Interim Agreement
Nifty Falls for 9th Straight Session, Worst Losing Streak Since 2011

Indian stock markets continued their downward spiral for the ninth consecutive session on February 17, marking Nifty’s longest losing streak since May 2011. The sharp decline was fueled by relentless selling pressure from foreign institutional investors (FIIs), a depreciating rupee, and renewed concerns over global trade tensions. U.S. President Donald Trump’s decision to impose reciprocal tariffs on Indian exports further exacerbated investor concerns, leading to a steep sell-off across all sectors. With no significant domestic triggers to support the market, investors closely monitored global economic developments, currency fluctuations, and institutional flows for directional cues.
By early trade, the Sensex had plummeted 590 points, or 0.78%, to 75,348.64, while the Nifty 50 tumbled 196 points, or 0.86%, to 22,733.10. The broader markets faced even sharper corrections, with the Nifty Smallcap 100 and Nifty Midcap 100 indices nosediving more than 2% each. The bearish sentiment was reflected in market breadth, with 1,901 stocks declining against just 765 advancing on the BSE. The sell-off pushed the total market capitalization of BSE-listed companies below ₹400 lakh crore, reaching an eight-month low.

All 13 sectoral indices opened in the red, with Nifty Realty, Nifty Auto, and Nifty Media taking the hardest hits, falling between 1.5% and 2.5%. However, as the session progressed, some indices managed to pare losses, with Nifty Pharma and Nifty Media even inching into positive territory. Despite the gloom, a few macroeconomic factors provided some relief to investors, including easing geopolitical tensions between Russia and Ukraine, cooling crude oil prices, a softening U.S. dollar, and rising speculation that the Reserve Bank of India (RBI) may cut interest rates in its upcoming April policy meeting.
The corporate earnings season for the December 2024 quarter also weighed heavily on sentiment. Analysts noted that both the Nifty and BSE500 companies reported single-digit profit after tax (PAT) growth, prompting further earnings downgrades. While the impact was less severe than in the September quarter, the weak results raised concerns about market valuations. According to V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the combination of high valuations and slow earnings growth has made Indian equities vulnerable to prolonged FII selling. He emphasized that modest single-digit earnings growth does not justify premium valuations, and only a recovery in corporate profits, coupled with a weakening U.S. dollar, could reverse the current market trend.
Meanwhile, Wall Street displayed resilience, with the S&P 500 remaining flat, the Nasdaq Composite edging up 0.4%, and the Dow Jones Industrial Average slipping by 0.4%. However, weak U.S. economic data weighed on the dollar, with retail sales contracting by 0.9% in January, far worse than the expected decline of 0.1%. This has fueled speculation that the Federal Reserve might reconsider its interest rate trajectory, potentially leading to further dollar weakness.
Looking ahead, market experts suggest that the performance of the banking and IT sectors will be crucial in determining the near-term direction of Indian equities. Traders are advised to adjust their strategies, with a focus on managing downside risks. Religare Broking’s Ajit Mishra cautioned that while Nifty has been attempting to hold the crucial 22,800 support level, the broader market structure still suggests the potential for further declines.
To Summarize
Despite the current challenges, India’s macroeconomic fundamentals remain strong, and analysts anticipate that the ongoing correction could create attractive long-term buying opportunities. However, in the short term, global trade tensions, FII selling, and corporate earnings concerns are expected to keep markets volatile. Investors should remain cautious, closely tracking both domestic policy developments and global economic shifts
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