The Indian benchmark indices reversed course and recovered in the last hour of trade to end higher on February 17. With this, the market finally managed to break free of its eight-day losing streak, albeit with minor gains. The volatility index ‘India VIX’ surged 6% to 16. The Indian market is facing a raft of headwinds including the relentless selling by FIIs, a weakening rupee, fears of reciprocal US tariffs and worries over a potential multi-front global trade war. Further weakening the sentiment has been India’s premium valuations, at a time when earnings growth is witnessing a cyclical slowdown, making it difficult for Indian equities to justify current prices. While the Nifty 50’s valuation dropped below its five-year average today, analysts cautioned that prices still remain expensive in the broader market. While largecaps and midcaps recouped intraday losses, pressure persisted in smallcap names. The BSE Smallcap index was down 0.6 percent while BSE Midcap moved largely in tandum with the blue-chips, up 0.5 percent. On the sector front, Nifty Pharma index as the top gainer, led by names like Glenmark Pharma, Aurobindo Pharma and Grano India. Among specific stocks, heavyweights HDFC Bank, Reliance Industries, and IndusInd Bank emerged as top contributors.
