The benchmarks indicate a Negative trend in the market, despite a slow start to the day.

Equity benchmark indices witnessed heavy selling pressure on Friday amid weak global cues after the US President Donald Trump vowed to impose tariffs on Canada, Mexico as planned from 4 March onwards.

At the closing bell, the BSE Sensex  closed Lower by 1414 points (down 1.9%).

Meanwhile, the NSE Nifty closed 420 points Lower (down 1.9%).

HDFC Bank, Trent, and Hindalco are among the top gainers today

Wipro, Tech Mahindra, and Jio Financial, on the other hand, were among the top losers today.

The GIFT Nifty was trading at  22,251, Lower by 399 points at the time of writing.

The BSE MidCap index ended 2.2% Lower, and the BSE SmallCap index ended 2.3% Lower.

Sectoral indices were trading on a negative note, with stocks in the auto sector, power sector, and FMCG sector witnessing selling pressure.

The rupee is trading at Rs 87.5 against the US$.

Gold prices for the latest contract on MCX are trading 0.5% Lower at Rs 84,769 per 10 grams.

Meanwhile, silver prices were trading 0.6% Lower at Rs 93,100 per 1 kg.

Here are four reasons why Indian Markets are falling today.

#1 Indian Banks' Earnings Take a Hit

The Indian stock market is bracing for a potential setback as market buzz suggests that the Q4 earnings of Indian banks may fall short of expectations. This news has intensified selling pressure on the market, particularly after the disappointing Q3FY25 earnings season.

With banking stocks accounting for a significant 30% of the index's strength, any negative sentiment in this sector can have a disproportionate impact on the overall market.

#2 DIIs Maintain Elevated Positions

The Indian markets are witnessing a sustained selling streak by Foreign Institutional Investors (FIIs), but surprisingly, Domestic Institutional Investors (DIIs) are not countering this trend as they typically do. A key reason for this unusual behaviour is that DIIs are currently stuck at higher levels, having built up significant positions in the market.

The absence of DIIs' counterbalancing effect is allowing FII selling to dictate market sentiment, contributing to the current volatility.

#3 MSCI rejig

The upcoming MSCI rejig has added to the market's woes, contributing to the stock market crash on Friday. The MSCI rejig, which is set to take effect soon, is expected to have a significant impact on trade volumes, as well as the inflow and outflow of money into specific stocks.

As a result, both Domestic Institutional Investors (DIIs) and Foreign Institutional Investors (FIIs) are expected to rebalance their positions ahead of the MSCI rejig.

#4 US Bond Yields Climb to New Heights

FIIs are on a selling spree in the Indian market, squaring off their positions to take advantage of better returns in the US bond market. This shift in investment strategy comes after Donald Trump's inauguration as the 47th President of the United States.

The attractiveness of the US bond market can be attributed to the rising bond yields, which have made investments in the US more lucrative. As a result, FIIs are redirecting their funds from the Indian market to the US bond market.
 

IREDA Slumps 8.5% on F&O

In the news from Power sector, The Indian Renewable Energy Development Agency's (IREDA) stock price took a significant hit on 28 February 2025, plummeting over 8% in intra-day trading. This decline marked the beginning of the March series in the Futures & Options (F&O) segment, where IREDA shares are now being traded.

IREDA share price took a hit on Friday, a day's low of Rs 151.6, marking a decline of sharp 8.5%. This sharp decline marked a substantial correction from the company's post-listing peak.

Since reaching its record high of Rs 310 on 15 July 2024, IREDA's stock has now fallen by more than 51%. This downward trajectory has erased a substantial portion of the company's gains. However, despite this significant correction, IREDA's stock has still managed to deliver a respectable 11.5% gain over the past year.

IREDA recently reported an impressive Q3 performance, showcasing the company's underlying strength despite the recent stock price fluctuations.

The company's net profit surged 27% year-on-year (YoY) to Rs 4.3 billion (bn), demonstrating significant growth, while revenue jumped 36% to Rs 16.9 bn, driven by robust business performance.

As the renewable energy sector continues to evolve, IREDA's stock performance will likely remain closely tied to broader market trends and investor sentiment. Investors will be closely watching the company's progress and the overall sectoral dynamics to determine the stock's future direction

Tech Stocks Take a Hit, Decline Up to 5%

Moving on to the news from IT sector, IT stocks took a beating on 28 February 2025, with the Nifty IT index plummeting nearly 4% to 37,478.6, marking its seventh consecutive session of losses. This downturn was largely fuelled by concerns over US President Donald Trump's latest tariff threats, which have been weighing heavily on the market.

Meanwhile, Tech Mahindra, which plummeted 6% to Rs 1,497.2, and Persistent Systems, which also fell 6% to Rs 5,171.2.

Wipro, Coforge, and Mphasis shares plummeted over 4% each, leading the decline. Meanwhile, heavyweight IT stocks Infosys, HCL Tech, and TCS fell nearly 3% each, exerting significant downward pressure on the index. These declines were part of a broader downturn in the IT sector.

Notably, the decline in Infosys and TCS' share prices was the primary driver of the IT index's downfall, highlighting the significant impact of these industry giants on the sector's overall performance.

The IT sector's decline is likely to have far-reaching implications for the Indian economy. The sector's ability to recover from this decline will depend on various factors, including the outcome of the US tariff threats and the overall global economic scenario.

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