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What happened in the Indian stock market today?

On February 28, 2024, the domestic benchmark equity indices, Sensex and Nifty 50, concluded Wednesday's session with losses.

Stock Market News Today (28-Feb-2024)

Sensex plunged by 790.34 points, marking a 1.08 % decline to settle at 72,304.88, hitting a low of 72,222.29. Meanwhile, Nifty dropped to 21,918.85 before closing at 21,951.20, down by 247.10 points or 1.11 %, representing its sharpest decline in five weeks. 

Analysts attribute the downturn to heavy selling in PSU bank, realty, auto, oil, and gas stocks. Short-term selling pressure ensued as investors opted to book profits following substantial gains.

Impact on the stock market

In Wednesday’s trading session, all sectoral indices experienced declines, with notable losses seen in auto, oil & gas, power, and realty sectors, each down by 2%. 

You may also like: Biotechnology industry in India: A sector overview & future prospects

The broader market sentiment was negatively impacted, particularly affecting the media and PSU banking sectors, which emerged as the major laggards. 

Sector/IndexPerformance
Information Technology-0.34%
Healthcare-0.92%
Oil & Gas-2.08%
Realty-2.11%
PSU Banks-2.30%

Top gainers today

CompanyPriceChange (%age)
HUL2,421.55+0.68%
Infosys1,671.25+0.46%
TCS4,118.95+0.35%
Bharti Airtel1,128.75+0.11%

Top losers today

CompanyPriceChange (%age)
Power Grid Corp279.55-4.43%
Apollo Hospital6,362.35-3.90%
Eicher Motors3,863.75-3.47%
Bajaj Auto8,188.65-3.25%
Maruti Suzuki11,152.80-3.02%

Market aftermath: Impact on stocks

Vodafone Idea plummets 12%

Vodafone Idea shares plunged 12% despite plans to raise ₹ 45,000 crore, aiming to boost 4G coverage and prepare for 5G rollout. The company aims to secure ₹ 20,000 crore through equity and the rest via debt. 

Brokerages maintained ‘reduce’ calls, with Nomura setting a target price of ₹ 6.5. Despite the announcement, shares settled 4.45% lower at ₹ 16.1. In Q3 FY23-24, Vodafone Idea reported a net loss of ₹ 6,985.9 crore and revenue of ₹ 10,673.1 crore.

Also Read: Telecom industry in India: An overview of growth and opportunities

Asian Paints dips 7% in four days

Asian Paints faces a 7% decline over four days due to heightened competition from Grasim’s entry into the paints sector. Shares are down 17.5% year-to-date, trading at ₹ 2,807 on the NSE. Grasim’s Birla Opus aims to challenge Asian Paints’ dominance. 

Brokerage CLSA downgraded Asian Paints to ‘sell’, slashing its price target by 25% to ₹ 2,425. CLSA adjusted earnings estimates for FY25/26 by 8-10%. The stock’s high valuations offer limited upside potential, signalling a potential de-rating.

Juniper Hotels IPO surges 11% post-flat debut

Juniper Hotels’ IPO, priced at ₹ 360 per share, saw a tepid debut at ₹ 365, just a 1.39% premium. However, the stock rallied strongly thereafter, reaching ₹ 401 on the NSE, an 11.5% increase. 

The IPO raised ₹ 18,000 million with a 2.18 times subscription. The company plans to utilise ₹15,000 million for debt repayment and general corporate purposes. Despite its solid presence, recent financial performance has been mixed, urging caution among investors.

Also Read: Road infrastructure in India: A snapshot of its current status and future 

Oil prices retreat

On February 28, oil prices fell as Brent crude dropped by 1.08% to $82.75 a barrel, while U.S. WTI futures declined by 1.17% to $77.95. The drop was attributed to profit-taking, combined with a surge in U.S. crude stocks, which saw an increase of 8.43 million barrels in the week ended February 23. 

Conclusion

In today’s market wrap-up, the Sensex and Nifty 50 experienced losses, with heavy selling observed in PSU bank, realty, auto, and oil & gas stocks. 

Vodafone Idea shares plummeted despite fundraising plans, while Asian Paints faced a decline amid heightened competition. Mazagon Dock surged amidst high-volume trading, and oil prices retreated due to profit-taking and increased US crude stocks.

Stay tuned on StockGro for more such market updates!

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Hunny Meghani

A curious mind, a love for writing, and a passion for all things finance - that's me in a nutshell. Whether I'm exploring the latest stock market trends or diving into the nitty-gritty of personal finance, marketing, and AI. I'm always on the hunt for the next big story.

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