Nifty 50 is on track for its second-worst monthly losing streak in 30 years, down 4% in February
Stock Market Update – Despite a volatile session, both the BSE Sensex and Nifty 50 rebounded from early losses to trade at their day’s high levels. The Sensex was up 288 points (0.39%) at 74,742.64, while the Nifty 50 rose 51 points (0.23%) to 22,605.20.
In the broader market, the Nifty MidCap index edged up 0.26%, while the Nifty SmallCap index gained 0.44%, indicating selective buying in mid and small-cap stocks.
Tata Investment Shares Surge Amid Tata Capital IPO Buzz
Tata Investment shares witnessed a strong rally in today’s session, surging 10.3% in intraday trade to hit a high of ₹6,343.8 per share on the Bombay Stock Exchange (BSE). The surge followed reports that the Board of Tata Capital has approved an initial public offering (IPO) for the non-banking financial company (NBFC). Investor enthusiasm around Tata Group’s financial arm entering the public markets has fueled strong buying interest in Tata Investment shares.
Tata Capital’s upcoming IPO marks a significant milestone, making it the second Tata Group company to go public in under two years. In 2023, Tata Technologies made its stock market debut, nearly two decades after Tata Consultancy Services (TCS) was listed in 2004. The Tata Capital IPO is expected to attract substantial institutional and retail investor participation, further boosting sentiment in the group’s financial stocks.
Nifty’s Losing Streak Among the Worst in Three Decades
The stock market downturn that began in October 2024 has extended into February 2025, placing the Nifty 50 index on the verge of registering its second-worst monthly losing streak in 30 years. The benchmark index has already declined 4% this month, with only three trading sessions left before February closes.
Since its launch in July 1990, the Nifty 50 index has recorded only three instances of consecutive net losses for five or more months, making the current downturn particularly concerning. The persistent bearish trend has been attributed to global macroeconomic uncertainty, foreign institutional investor (FII) outflows, and weaker corporate earnings. Investors remain cautious as the index struggles to find strong support levels amid volatile global markets.
Century Enka’s Strong Comeback After Heavy Losses
Shares of Century Enka, a small-cap stock, extended their recent rally by surging 8% to ₹615 on the BSE in intraday trade. Over the past week, the stock has skyrocketed 35%, significantly outperforming the 1.8% decline in the BSE Sensex. This impressive comeback follows a period of steep losses, where Century Enka shares plunged 38% in just two months, from ₹735.65 on December 16, 2024.
The rally has been fueled by optimism around Nylon Tyre Cord Fabric (NTCF) demand growth in Q4 FY25 and FY26, as indicated by the company’s management. Market analysts expect continued volatility in the stock as investors weigh future demand prospects against prior losses.
Metals Sector Under Pressure as Nifty Metal Index Falls
The Nifty Metal Index saw a 1.01% decline in early trading, reflecting selling pressure in metals stocks. Weak global demand and concerns over slowing industrial growth have dampened sentiment in the sector. Companies in the metals industry have struggled to maintain stability as commodity price fluctuations and macroeconomic headwinds continue to affect earnings projections.
Investors are closely monitoring global cues, particularly from major commodity-consuming economies, to assess whether the metals sector will witness a turnaround in the near future.
Public Sector Banks on the Rise Amid Optimism
Shares of public sector banks (PSBs) saw a positive uptrend, with key players like Central Bank of India, Indian Overseas Bank, Punjab & Sind Bank, UCO Bank, and Bank of Maharashtra surging up to 4.4% in intraday trade. The Nifty PSU Bank index gained 0.54%, hitting a high of 5,985.80 as investors continued to show confidence in the sector.
Among the top gainers, Central Bank of India rose 4.37% to ₹48, followed by Indian Overseas Bank (3.72%), Punjab & Sind Bank (3.36%), and UCO Bank (3.31%). Improved financial performance, loan growth, and better asset quality among PSBs have strengthened investor sentiment, contributing to their strong performance.
Tata Capital IPO – A Step Closer to Market Debut
The much-anticipated Tata Capital IPO is moving forward, marking Tata Group’s continued expansion in the financial services sector. This IPO follows the successful listing of Tata Technologies in 2023, signaling the conglomerate’s strategic focus on unlocking value through public offerings.
Market participants expect strong demand for the IPO, given Tata Capital’s robust presence in the NBFC space and its diversified portfolio. Investors are keenly awaiting further details on pricing, valuation, and expected listing date, as the offering gains momentum.
IREDA Gains 4% After Shareholders Approve Fundraising Plan
Shares of Indian Renewable Energy Development Agency (IREDA) climbed 4% after the company announced shareholder approval for a ₹5,000-crore fundraise via a Qualified Institutional Placement (QIP). The decision follows IREDA’s recent Navratna status achievement, positioning it among India’s top state-owned enterprises.
The capital infusion will support IREDA’s clean energy initiatives, strengthening its role in financing India’s renewable energy transition. The company’s growing influence in the green energy space has attracted increased investor interest, leading to recent gains in its stock price.
Welspun Specialty Solutions Hits 5% Upper Circuit
Welspun Specialty Solutions saw a sharp rally, hitting a 5% upper circuit as shares surged to ₹41.71 per share on the BSE. This rise came despite the BSE Sensex showing modest gains of 0.39%. The rally has been driven by strong earnings reports and expansion plans, with Welspun Specialty benefitting from increased demand in the specialty steel and alloy sector.
Market analysts see continued upside potential for the stock, though short-term volatility may persist given broader market conditions.
SEBI Proposes Stricter Derivatives Market Rules
In an effort to reduce risk in the derivatives market, the Securities and Exchange Board of India (SEBI) has proposed tighter regulations linking single-stock derivatives to the cash market. The move is intended to curb excessive speculation and volatility, which have increasingly impacted broader market movements.
The proposal comes amid concerns that heightened trading activity in futures and options (F&O) has contributed to market instability. Market participants are awaiting SEBI’s final ruling on the proposed regulations, which could significantly impact derivative trading strategies.
Conclusion
The stock market today reflected mixed sentiment, with gains in Tata Investment, PSBs, and specialty stocks contrasting with continued weakness in metals and derivatives-linked sectors. The Tata Capital IPO announcement, IREDA’s fundraise, and Welspun Specialty’s rally fueled optimism, while Nifty’s persistent losing streak raised caution among traders.
The market remains highly sensitive to global economic trends, corporate earnings, and regulatory changes. Investors are closely watching developments in the Tata Capital IPO, SEBI’s proposed derivative regulations, and upcoming economic data releases to gauge the market’s future direction. As the month-end approaches, volatility is expected to persist, making risk management a crucial factor for traders and investors alike.
