By Dalal Street Investment Journal (DSIJ)
Indian markets plummeted on Friday, with Nifty and Sensex dropping over 1%. Nifty fell below the 25,200 mark in late trade, driven by MSCI adjustments. Heavyweight financial stocks led the decline, while the Realty sector slumped more than 2%. However, the Nifty IT index ended in the green, extending its winning streak for the third consecutive day.
On Friday, February 27, India’s key equity benchmarks, the Nifty 50 and the Sensex, closed in red, falling over 1% led by heavyweight financial stocks. Investors remained uncertain about Washington's next course of action on Iran while awaiting key GDP data.
The benchmark Nifty 50 opened weak and stayed under pressure throughout the session. Mid-day saw a brief consolidation phase, followed by a sharp sell-off in the final leg of trade. This sell-off was likely driven by MSCI adjustments, causing the Nifty index to dip below 25,200 and close at its lowest level since February 2.
At the close, the Nifty 50 fell by 317.90 points, or 1.25%, ending at 25,178.65, below the 200-SMA. The Sensex dropped by 961.42 points, or 1.17%, to 81,287.19. ICICI Bank and HDFC Bank were the top drags, weighing heavily on the index. The Bank Nifty finished 1.08% lower at 60,529.
On a weekly basis, the benchmark Nifty 50 dropped by 1.54%, while the Sensex fell by 1.84%. Notably, the Nifty 50 extended its decline for the third consecutive month, ending February down by over 0.50%.
In February, the Nifty IT sector grabbed the spotlight. The Nifty IT index ended the month down by 19.54%, marking its worst monthly performance since September 2008, as concerns over AI-led disruption continued to weigh. However, the index saw a slight recovery on Friday, closing up by 0.16%.
Investors now await India's GDP data for the December quarter, due later in the day. The print will be the first under the new series, with the base year shifted to 2022-23 from 2011-12.
On the sectoral front, 2 out of 11 key sectoral indices ended in positive territory. Meanwhile, broader indices such as the Nifty Midcap index and Nifty Smallcap 100 index ended down 1.14% and 1.10%, respectively.
On Friday, the Nifty Media index emerged as the top gainer among the sectoral indices, ending 0.6% higher.
On the other hand, the Nifty Realty index plunged by 2.26%. The index is trading near its 52-week low.
Among individual stocks,
Marine Electric's share price jumped 0.43% as the company bagged two supply orders totalling ₹27.49 crore to CG Semi and Oberoi Realty.
Vishal Mega Mart lost 7.65% on a report that top shareholder Samayat Services is likely to sell a stake in the company.
State-owned e-commerce service provider MSTC rose 1.17% after emerging as the lowest bidder for a tender hosted by Coal India.
The key drivers of the index gains were:
Infosys: +8.46 points
HCL Technologies: +3.62 points
Trent: +2.11 points
On the other hand, these stocks weighed on the index:
ICICI Bank: -40.73 points
HDFC Bank: -36.40 points
Bharti Airtel: -31.67 points
As of February 27, 2026, the market breadth was in favour of declining stocks. Out of 3,236 stocks traded on the NSE, 1,140 advanced, 1,992 declined, and 104 remained unchanged.
A total of 56 stocks touched their 52-week highs, while 255 hit their 52-week lows. Additionally, 60 stocks were locked in their upper circuits, whereas 68 stocks were locked in lower circuits.
Disclaimer: The article is for informational purposes only and not investment advice.
SEBI Registered Research Analyst (INH000006396).
Founded in 1986, Dalal Street Investment Journal (DSIJ) brings decades of experience in India’s equity markets. DSIJ's research combines fundamental analysis with price action, guided by disciplined risk management and capital preservation. They follow a structured, data-driven approach designed to help investors and traders make informed decisions beyond short-term market noise.
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