Stock market today: Nifty 50, Sensex recover smartly from day’s low, snap 8-day losing run; pharma stocks top gainers

Indian Stock Market: After an eight-day decline, bulls finally took charge on Dalal Street in Monday's trading session, pushing the front-line indices into positive territory. Although both Nifty 50 and Sensex began the session in the red, a significant rebound in financials, along with a strong contribution from pharma stocks, provided much-needed relief and a boost for the markets.

The Nifty 50 ended the session on February 17 with a gain of 0.13% at 22,970, while the Sensex closed at 75,996, marking a 0.08% increase from the previous close. Mid-cap and small-cap stocks, which had been under significant selling pressure in recent sessions, also managed to end higher.

The Nifty midcap 100 index rose by 0.39% to 49,849, and the Nifty smallcap 100 index concluded the day with a gain of 0.04%, closing at 15,413.

Today's market recovery can be attributed to the sustained selling pressure in recent sessions, which has led to stocks entering oversold territory, creating opportunities for a technical rebound as investors capitalise on the correction.

On the sectoral front, the Nifty Pharma index emerged as the top gainer, surging by 1.27%, followed by the Nifty Consumer Durables, Nifty Metal, Nifty Oil & Gas, and Nifty Bank, all of which ended in the green with returns ranging between 0.32% and 0.82%, respectively.

With the absence of near-term domestic catalysts, investors are increasingly focused on global developments, which are weighing on market sentiment. Escalating global trade tensions are raising concerns about the potential for a full-blown trade war, including supply chain disruptions and the risk of slower economic growth. 

These factors have compounded the already bearish sentiment, which was fueled by moderate earnings growth and rising valuations, leading overseas investors to take billions out from the Indian markets.

So far this month, FPIs have offloaded ₹22,929 crore worth of Indian shares on exchanges, following ₹87,374 crore worth of sales in January. This brings their year-to-date (YTD) outflows to ₹1.10 lakh crore, as per the Trendlyne data.

The sustained selling by FPIs has brought India's market capitalization below the $4 trillion mark for the first time in over 14 months.

The selling has not only impacted the markets but also exerted significant pressure on the Indian rupee, which has fallen nearly 1.50% in 2025 so far, making it the second-worst performing Asian currency after the Indonesian Rupiah.

Commenting on the today's market performance, Vinod Nair, Head of Research, Geojit Financial Services, said, "Modest earnings growth in Q3 FY25, coupled with sustained selling by FIIs, is limiting the potential for a near-term market rebound. A weakening rupee and a widening trade deficit are likely to heighten investor caution. Despite a nosedive correction in broader indices, valuations remain unappealing. However, any easing of US trade uncertainties and initial signs of a recovery in discretionary spending could help support a market rebound."

Technical Outlook

Rupak De, Senior Technical Analyst at LKP Securities said, "The index closed significantly higher from the day’s low, driven by buying interest at the lower end of the range. However, sentiment remains weak as it failed to reclaim the key Fibonacci retracement level."

"Additionally, the index continues to trade below critical moving averages, reinforcing the overall bearish undertone. In the short term, the index is likely to remain a sell-on-rise candidate unless it decisively crosses above 23,150 on a closing or sustained basis. On the downside, support is placed at 22,800," he added.

Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates, said, "Nifty has formed a bullish belt hold candlestick pattern near multiple support zone, indicating strength. As long as the index holds 22,725, a buy-on-dips strategy remains favourable. The 21-Day Simple Moving Average (DSMA) at 23,240 acts as an immediate hurdle, and a decisive move above 23,250 could confirm a near-term bottom reversal."

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.