Bears Dominate Dalal Street, Equities Log Decline Led by Financials

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

By Dehuti Jani

February 27, 2026 at 11:33 AM IST

Indian equity benchmarks fell sharply on Friday in broad-based declines led by financials, as benchmark indices posted their third consecutive monthly loss and IT stocks recorded their worst monthly performance since September 2008, battered by mounting fears that artificial intelligence could structurally erode sector earnings. The Nifty50 fell 1.22% to 25,178.65, while the BSE Sensex dropped 1.17% to 81,287.19, with heavyweight financials sliding 1.6% to lead losses on the day. ICICI Bank, Sun Pharmaceutical Industries, HDFC Bank and Mahindra & Mahindra were among the biggest drags on the indices. For the month, the Nifty shed 0.6% and the Sensex declined 1.2%, even as improving corporate earnings and easing trade tensions, India sealed a key trade deal with the European Union and reached an interim framework for an agreement with the US failed to offset the IT-driven selloff.

Broader markets fell in line with the benchmarks, with the Nifty Midcap 100 and Nifty SmallCap 100 declining 1.14% and 1.10% respectively. Nifty Realty and Nifty Financial Services were the worst-performing sectors, tumbling 2.3% and 2.1% respectively, while selling was broad-based across banks, autos, metals, realty and chemicals. Defensive participation remained limited, with only IT and media offering selective support in an otherwise risk-averse session. Analysts noted that overall market sentiment pointed firmly toward caution, with investors preferring stock-specific trades over aggressive sectoral positioning amid the ongoing volatility.

Top Movers of the Day

Utkarsh Small Finance Bank fell 6.15% to ₹13.91, Fusion Finance dropped 5.98% to ₹191.89, L&T Finance slipped 3.07% to ₹290.70 and Spandana Sphoorty Financial declined 1.58% after Bihar tightened MFI regulations, triggering concerns over credit growth, compliance costs and asset quality.

Lenskart Solutions surged 6% to a fresh high of ₹541.45 on the BSE, outperforming despite broader market weakness.

Redington rallied nearly 17% on the BSE in a sharp, high-volume move, though no immediate corporate trigger was disclosed.

Capital market stocks weakened after remarks on higher Securities Transaction Tax potentially impacting derivatives volumes, with Angel One, CAMS, BSE, and CDSL falling up to 4%.

Tejas Networks jumped 15% to ₹429.15 on the BSE, extending its recent rally on sustained buying interest following contract wins.

Steel Exchange India gained 6.2% to ₹8.85 after announcing a board meeting on 4 March to consider a fundraising proposal.

Sarda Energy & Minerals climbed nearly 7% to ₹553.94, with volumes rising over 5.6 times the average, despite no specific trigger.

Foseco India surged 15.06% to ₹5,443.70 after reporting an 8.11% year-on-year rise in Q3 revenue to ₹1.48 billion and announcing a dividend.

Sai Life Sciences hit a fresh high of ₹992, rising 3% and outperforming in a subdued session.

Tata Motors edged up 2% to ₹501, extending its six-month rally of around 50%, significantly outperforming the broader market.

Gaudium IVF and Women Health debuted at ₹83 on the NSE, a 5% premium over its issue price of ₹79, in a steady listing.

Vishal Mega Mart slipped 7.6% to ₹117.80 amid heavy block trades, with over 722 million shares changing hands on the NSE.

Futures & Options
Nifty March 2026 futures closed at 25,341, a premium of 162.35 points over the spot Nifty, which tumbled 317.90 points or 1.25% to settle at 25,178.65 in the cash market. The wide premium reflected active hedging and position-building in the March series amid the sharp day-end selloff. India VIX rose 4.89% to 13.70, snapping a three-session streak of declines and signalling a renewed pickup in near-term volatility expectations as sentiment turned risk-off heading into the weekend. Infosys, HDFC Bank and L&T Finance were the most actively traded stock futures contracts in the F&O segment on the NSE. The March 2026 derivative contracts are set to expire on 30 March 2026.

Bonds
Indian government bond yields declined on Friday, even as market participants anticipated substantial auction supply. The benchmark 6.48% 2035 bond yield closed at 6.6601%, compared to 6.6943% in the previous session. On Friday, the government raised a total of ₹320 billion through the benchmark 6.48% 2035 bond at a cut-off yield of 6.7134%. These developments have brought renewed attention to the demand-supply balance.

Forex
The Indian rupee logged its first monthly gain since April 2025 in February, strengthening approximately 1% as a pick-up in foreign portfolio inflows and the announcement of a US-India trade deal eased pressure on the currency after it had struggled near record lows at the end of January. On Friday, however, the rupee ended marginally weaker at 90.9750 per dollar, having hovered within a less-than-5 paisa range through the session, as traders opted to consolidate positions heading into the weekend.

Crypto
Crypto markets gave back much of the previous session's gains on Friday, with the bullish momentum that had briefly pushed Bitcoin toward $70,000 largely evaporating within 24 hours. Bitcoin slipped 1.25% to $67,788, with its market capitalisation sitting at approximately $1.35 trillion on trading volume of over $41 billion, while Ethereum eased to around $2,018, reflecting a return of caution across the broader digital asset space. Markets were also bracing for a large $8.9 billion Bitcoin and Ethereum options expiry, which traders warned could inject fresh short-term volatility and influence near-term price swings.

US Stock Futures
US stock futures fell on Friday, pointing to a downbeat end to the week as the technology sector remained in focus ahead of key inflation data. Dow Jones futures dropped 250 points or 0.5%, S&P 500 futures slid 25 points or 0.4%, and Nasdaq 100 futures slipped 85 points or 0.3%, extending the previous session's mixed close on Wall Street where the S&P 500 lost 0.5% and the Nasdaq Composite declined 1.2%, while the Dow eked out a marginal gain.

US Treasury Notes
US Treasury yields fell to multi-month lows on Friday as investors sought the safety of government debt amid ongoing global policy uncertainty and shifting geopolitical developments. The benchmark 10-year note yield declined to 4.01%, its lowest level in three months, driven by robust demand following recent market volatility surrounding US tariff policies and news of progress in nuclear negotiations with Tehran, which eased some of the geopolitical risk premium that had kept yields elevated through much of the week.

Top News