Indian stock markets showed signs of bearishness on February 28. On the last trading day of the month, benchmark indices saw significant declines, with the 30-share Sensex plunging 1,414.33 points (1.9 per cent) to close at 73,198.1. The Nifty50 index dropped 420.35 points (1.86 per cent) to end at 22,124.7. Notably, this was the steepest decline in the stock market since the crash nearly five years ago during the Covid crisis.
The markets are set to open for the first time in March on Monday, March 3. Several global and domestic factors are expected to influence D-Street in the first week of the month.
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Here’s a look at some key factors that could impact D-Street in the week starting March 3:
Third Quarter GDP Data
The Ministry of Statistics & Programme Implementation released India’s Gross Domestic Product (GDP) estimates on February 28. According to the ministry, real GDP for the third quarter of FY 2024-25 is expected to grow by 6.2 per cent, up from 5.4 per cent in the second quarter. Moreover, nominal GDP growth for the third quarter is projected at 9.9 per cent.
The ministry also estimated that Private Final Consumption Expenditure (PFCE) will grow by 7.6 per cent in FY 2024-25, compared to 5.6 per cent in 2023-24.
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Notably, since the data was released after market hours on February 28, the markets are likely to factor it in the coming week.
February Auto Sales
Automotive shares closed in the red on February 28, with the Nifty Auto index declining 3.92 per cent by the end of the session. In the coming week, D-Street is likely to react to the February vehicle sales data, which was released on March 1.
In February 2025, Mahindra & Mahindra reported a 15 per cent year-on-year growth in overall vehicle sales, selling 83,702 units. Maruti Suzuki India Ltd also posted a five per cent YoY increase in total vehicle sales for the month. In contrast, Tata Motors Ltd saw an eight per cent YoY decline, selling 86,406 units in February 2025.
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US Markets Rally
US stock markets surged on February 28, with key indices closing in the green. The S&P 500 rose 92.93 points (1.59 per cent) to end at 5,954.5, while the Nasdaq Composite gained 302.86 points (1.63 per cent), closing at 18,847.3.
Major stocks, including NVIDIA, Goldman Sachs, Amex, JPMorgan, and Apple, advanced between two per cent and four per cent.
FII Sell-Off Trend
On February 28, Foreign Institutional Investors (FIIs) net sold equities worth Rs 11,639.02 crore, while Domestic Institutional Investors (DIIs) purchased equities worth Rs 12,308.63 crore.
With this latest sell-off, FIIs have remained net sellers for six consecutive months since September 2024, whereas DIIs have sustained their buying trend since August 2023. So far in 2025, FIIs have offloaded equities worth Rs 1,46,362.74 crore.
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Weakening Rupee
The rupee fell 19 paise, closing at Rs 87.37 against the US dollar, as the dollar strengthened and domestic equities trended lower.
Earlier on February 28, the rupee opened at Rs 87.32, touched an intra-day low of Rs 87.53, but managed to recover slightly, ending at Rs 87.37.
Crude Oil
Rising oil prices often slow economic growth, which can dampen investor sentiment and impact stock prices.
On February 28, US West Texas Intermediate (WTI) crude closed at $69.80, down 0.29 per cent, while Brent crude futures settled at $72.81, declining 1.03 per cent.
