Final-Hour Selling Drama Keeps Sensex and Nifty Stuck Despite Strength in Auto, IT and Metal Stocks

Sensex Drops 700 Points From High — A Late Selloff Leaves Investors Guessing the Next Move

Index	Price	Change	% Chg
Nifty 50	25,482.50	57.85	+0.23%
Nifty Bank	61,043.35	3.95	-0.01%
Nifty Financial	28,339.65	44.55	+0.16%
BSE SENSEX	82,276.07	50.15	+0.06%

Indian stock markets ended almost flat on February 25 after a sharp intraday reversal erased strong morning gains, leaving investors cautious about the near-term trend. The Sensex and Nifty started the March derivatives series on a strong note and traded higher for most of the session, but heavy profit booking in the final hour pushed the indices sharply lower from their highs.

The Nifty 50 closed at 25,482.50, up 0.23 percent, while the Sensex ended at 82,276.07, barely holding onto gains. The Sensex dropped nearly 700 points from its intraday high of 82,957.91, while the Nifty slipped significantly from its peak of 25,652.60 and ended below the key psychological level of 25,500.

Markets initially rose nearly 0.9 percent during morning trade following a sharp decline in the previous session, but selling pressure emerged near resistance levels. The intraday pattern indicated that investors were booking profits at higher levels rather than building fresh positions.

Technical charts showed a small-bodied candle with a long upper shadow on the Nifty chart, signalling supply pressure at higher levels and limited upside momentum.

Also Read : Indian Investors Get Direct Access to US Stocks — Could This Transform Global Investing?

Metal, Auto and IT Stocks Supported the Market Despite Heavyweight Weakness

Sectoral trends remained mixed, with cyclical sectors providing support while heavyweight stocks dragged the indices lower. Metal stocks emerged as the biggest contributors to gains as the Nifty Metal index rose about 2.7 percent, supported by rising steel prices and price-target upgrades from global brokerage firms.

IT stocks also rebounded after the sharp correction seen earlier this month. The Nifty IT index gained around 1.6 percent, led by steady buying in large-cap technology stocks.

Major gainers included:

• Bajaj Auto rose nearly 3 percent and was the top Nifty gainer

• Tata Steel gained over 2 percent

• HCL Technologies rose over 2 percent

• Shriram Finance gained more than 2 percent

• Tata Consultancy Services gained over 2 percent

Other IT stocks including Infosys, Wipro and Tech Mahindra rose around 1 percent each, helping the sector recover after recent losses.

Auto stocks also remained firm with gains across major companies:

• Mahindra & Mahindra rose 1–2 percent

• Maruti Suzuki gained 1–2 percent

• Tata Motors Passenger Vehicles gained 1–2 percent

• Eicher Motors rose around 1–2 percent

The strength in these sectors prevented a deeper correction in the benchmark indices.

Top Stock Gainers – Nifty 50

Banking and Heavyweight Stocks Dragged Benchmarks Lower

Despite strength in metals and IT stocks, weakness in banking and heavyweight stocks capped the market’s upside. The Bank Nifty remained under pressure for the second consecutive session and slipped over 350 points from its intraday high of 61,317 before closing at 61,043, marginally lower for the day.

Key laggards included AU Small Finance Bank, which fell up to 2 percent, while State Bank of India declined about 1.7 percent. Other banking stocks including IDFC First Bank, Kotak Mahindra Bank, Yes Bank and Punjab National Bank declined up to 1 percent.

Among index heavyweights, Reliance Industries fell about 2.1 percent, contributing significantly to the market’s decline from intraday highs. ITC, Kotak Mahindra Bank and Tata Consumer Products also declined over 1 percent each.

Other notable losers included:

• Bajaj Finance down around 1 percent

• Bharti Airtel down around 1 percent

• UltraTech Cement down around 1 percent

• ONGC down around 1 percent

The weakness in heavyweight stocks prevented benchmark indices from sustaining gains despite positive sectoral trends.

Top Sector Gainers

Broader Markets Show Strength Even as Benchmarks Consolidate

Broader markets continued to outperform the benchmark indices, indicating sustained investor interest in midcap and smallcap stocks. The Nifty Midcap index rose around 0.5–0.6 percent, while the Smallcap index gained nearly 1 percent, reflecting selective buying in growth-oriented stocks.

Market breadth remained mixed, with about 1,966 stocks advancing and 2,064 declining, suggesting consolidation rather than a strong directional trend.

More than 100 stocks hit 52-week highs, while nearly 300 stocks touched 52-week lows, highlighting stock-specific opportunities.

Some of the notable stock movements included:

• Mahindra & Mahindra Financial Services rose nearly 5 percent

• Hero MotoCorp gained over 4 percent

• Vedanta rose about 4.7 percent after a brokerage upgrade

• National Aluminium rose over 4 percent

• Concord Biotech surged 13 percent in the Nifty 500 index

Other key stock-specific developments:

• Schaeffler India rose 3 percent after profit increased 35 percent

• SpiceJet gained 6 percent after a block deal

• Aditya Infotech rose 7 percent on stake sale expectations

• Univastu India gained 5 percent on order win

• Waaree Energies fell 10 percent despite a wind power project order

• IRFC declined 4 percent after government stake sale plans

These movements showed strong stock-specific action despite a range-bound index.

Here’s What Happened Today and Why Traders Reacted

Markets witnessed a volatile session as early gains were erased by profit booking and institutional activity. Traders remained cautious after the indices failed to sustain above key resistance levels.

Three Major Reasons Behind the Market Move

1. Profit Booking at Higher Levels

Markets rose nearly 0.9 percent in early trade before investors booked profits at higher levels.

Research analyst Hitesh Tailor said:

“Fresh long positions should preferably be initiated only after a decisive breakout above 25,800 on the Nifty.”

2. FII Selling Pressure

Foreign Institutional Investors remained net sellers.

• FIIs sold equities worth ₹102 crore

• DIIs bought equities worth ₹3,161 crore

Domestic institutional buying helped prevent a sharper decline.

3. Technical Resistance Levels

Failure to sustain above 25,650–25,670 triggered selling.

Market strategist Anand James said:

“Inability to float above 25530 could signal lack of upside momentum.”

Selling pressure was also visible near the 50-day EMA resistance level.

Technical Levels Suggest Consolidation Could Continue

Technical indicators suggest the market remains in a consolidation phase with strong resistance near current levels.

Important levels to watch:

Nifty Levels

• Support: 25,400–25,350

• Strong support: 25,300

• Immediate resistance: 25,600–25,650

• Breakout level: 25,800

Bank Nifty Levels

• Support: 60,800–60,700

• Resistance: 61,400–61,500

• Upside targets: 62,000–62,500

Analysts believe a break below 25,300 could trigger further weakness toward 25,050, while a move above 25,600–25,800 may revive bullish momentum.

What This Means for Traders and Investors

For traders and investors, the market behaviour indicates a consolidation phase rather than a major trend reversal. Sector rotation and stock-specific opportunities remain visible even as indices struggle near resistance levels.

Short-term impact on traders

• Increased volatility near resistance levels

• Profit booking dominating rallies

• Range-bound market conditions

• Level-based trading preferred

Impact on investor portfolios

• Metals and autos showing strength

• IT stocks stabilising after correction

• Banking stocks under pressure

• Midcaps and smallcaps outperforming

Analysts believe the ongoing consolidation phase could prepare the market for the next rally. Some estimates suggest the Nifty could move toward 28,000 by February 2027, provided macroeconomic conditions remain supportive.

For now, investors are expected to remain selective as markets continue to face resistance at higher levels.

• Nifty 50
• Bank Nifty
• Sensex

FAQs Final-Hour Selling Drama Keeps Sensex and Nifty Stuck Despite Strength

1. Why did Sensex fall nearly 700 points from the day’s high even though the market closed in the green?

Sensex fell sharply from its intraday high mainly due to profit booking at higher levels, selling in heavyweight stocks like Reliance Industries and SBI, and resistance near key technical levels. Even though metal and IT stocks supported the market, heavy selling in banking and FMCG stocks erased most of the gains.

2. Why did Nifty fail to sustain above the 25,600 level despite strong buying in IT and metal stocks?

Nifty faced strong resistance near the 25,600–25,670 zone, where traders preferred booking profits instead of building fresh positions. Technical resistance near the 50-day EMA and cautious institutional activity prevented the index from sustaining higher levels.

3. Which sectors supported the Indian stock market today despite heavy profit booking?

Metal, auto and IT sectors supported the market today. Metal stocks gained on rising steel prices, IT stocks recovered after recent losses, and auto stocks saw steady buying interest, which helped the indices close marginally higher despite selling pressure.

4. Why are midcap and smallcap stocks outperforming Sensex and Nifty in recent sessions?

Midcap and smallcap stocks are outperforming because investors are selectively investing in growth-oriented companies while large-cap stocks face resistance at higher levels. Strong earnings visibility and sector-specific opportunities are attracting investors toward broader markets.

5. How did FII and DII activity impact the stock market today?

Foreign Institutional Investors remained net sellers with equity outflows of about ₹102 crore, which created selling pressure near higher levels. However, Domestic Institutional Investors supported the market with net buying of around ₹3,161 crore, helping the indices avoid a sharper decline.

6. What are the key Nifty and Bank Nifty levels traders should watch after today’s volatile session?

For Nifty, immediate support is placed around 25,400–25,350 while resistance is near 25,600–25,650. A breakout above 25,800 could trigger a fresh rally. For Bank Nifty, support is seen near 60,800 while resistance is placed around 61,400–61,500.

7. How can today’s market volatility impact short-term traders and long-term investors?

Short-term traders may experience higher volatility and range-bound movements as the market consolidates near resistance levels. Long-term investors may see selective opportunities in sectors such as metals, autos and IT, while banking stocks could remain under pressure in the near term.