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Indian Stocks Mixed: Sensex Falls, Nifty Stable on Feb 29

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  Published in Business and Finance on Wednesday, January 7th 2026 at 1:06 GMT by Zee Business

Indian Stock Market Update: Sensex Dips, Nifty Holds Steady – Titan & IT Lead Gains (February 29, 2024)

The Indian stock market experienced a mixed trading session on February 29, 2024, with the benchmark Sensex slipping marginally while the Nifty 50 managed to remain above the 22,100 mark. Despite global market uncertainty stemming from stronger-than-expected US economic data and rising bond yields, domestic indices were supported by strong performance in certain sectors, notably Titan and Information Technology. This summary details the day's market activity, key drivers, sector performance, and future outlook based on the Zeebiz report and linked information.

Market Overview:

The BSE Sensex closed down 100.65 points, or 0.14%, at 73,817.62. The Nifty 50, however, demonstrated more resilience, ending the day at 22,122.05, a gain of 25.25 points, or 0.11%. Broader market indicators also presented a mixed picture. The BSE Midcap index outperformed, rising by 0.77%, while the BSE Smallcap index lagged, falling by 0.28%. This divergence suggests that investors were favouring established, large-cap companies over smaller, potentially riskier ventures.

The market breadth was positive, indicating more stocks advanced than declined. According to data from BSE, 1,969 shares advanced, 1,776 declined, and 130 remained unchanged. This positive breadth, despite the Sensex’s decline, points to selective buying within the market.

Key Drivers & Sector Performance:

The primary driver of positive sentiment was the stellar performance of Titan Company. Shares of Titan jumped over 4% to hit a new lifetime high, contributing significantly to the Nifty’s gains. The company’s strong Q3 earnings, published earlier, fuelled this rally. Specifically, Titan’s revenue grew by 12% year-on-year, driven by strong performances across its jewellery, watches, and eyewear businesses. The management’s optimistic outlook for future growth further bolstered investor confidence. (You can find details of Titan's Q3 results here: [ https://www.titancompany.com/investors/financial-results ])

The IT sector also shone, with major players like Infosys, TCS, and HCLTech experiencing gains. This positive movement within IT was partially attributed to the weakening of the Indian Rupee against the US dollar. A weaker Rupee makes IT services more competitive in the global market, potentially boosting revenue for Indian IT companies. However, analysts at Motilal Oswal Financial Services suggest the IT sector’s rally is more of a technical bounce after a period of underperformance. They cite a lack of significant order intake as a continuing concern. (More on Motilal Oswal's analysis can be found here: [ https://www.motilaloswal.com/ ])

Conversely, the media and FMCG sectors faced selling pressure, dragging down the overall market sentiment. Stocks like Sun TV and Hindustan Unilever experienced losses.

Global Context & Influencing Factors:

The global macroeconomic environment played a role in the market's hesitancy. Stronger-than-expected US economic data – specifically, a higher-than-anticipated reading for the Personal Consumption Expenditures (PCE) price index – prompted concerns about the Federal Reserve delaying interest rate cuts. This led to a rise in US bond yields, which often exert pressure on emerging market equities like India. Investors fear higher US yields could divert capital away from riskier assets in developing nations.

Furthermore, rising crude oil prices added to the anxieties. Increased oil prices can fuel inflation and negatively impact economic growth. Brent crude oil was trading above $83 a barrel, impacting India, which is a net importer of oil.

Foreign Institutional Investor (FII) Activity:

Preliminary data indicated a mixed trend in FII activity. While FIIs were net buyers in the cash segment, their activity in the derivatives segment was cautious. This suggests a degree of uncertainty among foreign investors regarding the sustainability of the recent market rally. As of February 29, FIIs had cumulatively invested approximately ₹1.12 lakh crore in Indian equities so far in 2024, contributing to the market’s overall positive performance this year.

Future Outlook:

The Zeebiz report suggests a cautious approach to the market. While the Nifty's ability to hold above 22,100 is a positive sign, the Sensex's dip signals underlying weakness. Analysts recommend monitoring global cues, particularly US bond yields and crude oil prices, for further direction.

Looking ahead, key events to watch include the upcoming Budget session and the Reserve Bank of India's monetary policy review. The budget announcements could significantly impact sector-specific stocks, while the RBI’s stance on interest rates will influence market liquidity and investor sentiment.

Titan is expected to continue its strong performance, while the IT sector’s sustainability will depend on order inflows and overall global economic conditions. Investors are advised to adopt a selective approach, focusing on fundamentally strong companies with growth potential.

Disclaimer: This summary is based on information available on Zeebiz.com as of February 29, 2024, and should not be considered financial advice. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.