Nifty records worst February month since Covid-19 with 6% loss

The index fell by 6.4% in February 2020, just before the nationwide lockdown due to COVID-19. In February 2022 and 2023, the Nifty declined by 3.2% and 2%, respectively. Its highest returns came in 2021, when it surged 6.6%, and in 2024, it gained 1.2%.

While 2020 was an extraordinary situation, this time, U.S. President Donald Trump’s tariff rhetoric and “Make America Great Again” (MAGA) slogan have fueled panic.

On Friday, Nifty closed at 22,124.70, breaking through all major support levels. It dropped 420.35 points, or 1.86%.

Rupak De, Senior Technical Analyst at LKP Securities, commented that Nifty remains in bearish territory. In the near term, support is expected around 21,800-22,000. A sustained move above 21,800 could trigger a recovery, while failure to hold this level may lead to further declines.

Sector-wise, IT and auto were hit hardest, with declines of up to 6%. Nifty IT fell 4.2%, and Nifty Auto dropped 3.9%. All 16 sectors ended the day in the red.Of the 2,972 stocks that traded on the NSE, 2,416 closed lower, with only 489 advancing. 789 stocks hit their 52-week lows.March Outlook:
Nifty enters March battered, with five consecutive monthly losses, marking its longest losing streak since its inception in 1996. Down 16%, or 4,150 points, from its all-time high of 26,277.35, India’s heartbeat index faces indecision and a lack of trend drivers. Its only hope now lies in positive seasonality.

Data from the last 10 years shows Nifty ended March in the green seven times, suggesting favorable seasonality in the final month of the financial year. The index posted gains in 2016, 2017, 2019, 2021, 2022, 2023, and 2024, while declining in 2015, 2018, and 2020.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)