Indian stock market update 10th February 2025

Indian Stock Market Review: Sensex, Nifty Decline Amid Global Trade Concerns

Markets End Lower on February 10, 2025

The Indian stock market closed in the red on Monday, February 10, 2025, as global trade tensions, a weakening rupee, and foreign investor outflows weighed on investor sentiment. Benchmark indices, the BSE Sensex and NSE Nifty 50, recorded significant losses, primarily driven by a sharp decline in metal stocks following the U.S. government's announcement of higher tariffs on steel and aluminum imports.

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Market Performance

Sensex: Declined by 548.39 points (0.70%), closing at 77,312.80.

Nifty 50: Fell by 178.35 points (0.76%), settling at 23,559.95.

Nifty Metal Index: Dropped nearly 3%, leading the sectoral decline.

Metal stocks bore the brunt of the sell-off, with Tata Steel and JSW Steel seeing a 4% decline. Broader market indices also remained weak as concerns over global trade policies affected investor confidence.

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Key Factors Driving the Market Decline

1. U.S. Tariffs on Metal Imports

The U.S. administration announced a 25% tariff on all steel and aluminum imports, triggering concerns over the global economy. This move negatively impacted Indian metal stocks, which rely heavily on exports. As a result, the Nifty Metal Index tumbled, dragging the overall market lower.

2. Rupee Weakens to Record Low

The Indian rupee depreciated sharply, hitting an all-time low of 87.95 per U.S. dollar, before closing at 87.47. The currency’s weakness was attributed to:

Persistent foreign portfolio investor (FPI) outflows.

A strong U.S. dollar and rising U.S. bond yields.

Uncertainty over global trade policies.

A weaker rupee increases the cost of imports, adding inflationary pressures on the Indian economy.

3. Foreign Institutional Investor (FII) Outflows

Data showed that foreign investors offloaded Indian equities, responding to heightened geopolitical risks and concerns over global growth. The ongoing sell-off in emerging markets also contributed to India’s market downturn.

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Stock Highlights

Gainers

Kotak Mahindra Bank Ltd.: Rose by 1.20% to ₹1,959.45, hitting a 52-week high.

VA Tech Wabag: Surged 13%, driven by a ₹3,251 crore order in Saudi Arabia and strong quarterly earnings.

Losers

Tata Steel & JSW Steel: Fell by approximately 4%, reacting to the U.S. tariff announcement.

Reliance Industries Ltd.: Declined 1.06% to ₹1,253.40, though it outperformed its sectoral peers.

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Investor Sentiment and Outlook

Investor sentiment remained cautious amid global trade tensions, a weak rupee, and continuous foreign fund outflows. Analysts suggest that the Indian market may remain volatile in the near term, with further corrections possible if global trade policies tighten further.

Key Takeaways for Investors

Metals and export-driven sectors may remain under pressure due to trade tariffs.

Banks and financials could offer stability, especially private sector lenders like Kotak Mahindra Bank.

Investors should watch for FII flows and currency movements for market direction.