Indian equities reeled under selling pressure on Thursday, with the benchmark indices falling by up to 0.85% in intraday trade, led by declines in realty, auto, FMCG, banking, and consumer durables stocks.

In the first three hours of trade, the BSE Sensex declined by as much as 714.48 points, or 0.85%, to touch a low of 83,020, while the NSE Nifty dropped nearly 222 points to the 25,597 level.

In line with the broader market trend, the Nifty Midcap 100 and Smallcap 100 indices also witnessed selling pressure, falling 0.88% and 0.5%, respectively.

The broad-based sell-off wiped out over ₹3 lakh crore in investor wealth, with the total market capitalisation of BSE-listed companies slipping to ₹468.46 lakh crore.

Market breadth remained negative, with 2,413 stocks declining compared with 1,471 advances, while 204 shares remained unchanged. As many as 92 stocks hit their 52-week lows, slightly fewer than the 105 counters that touched fresh 52-week highs.

According to VK Vijayakumar, Chief Investment Strategist at Geojit Investments, large-cap stocks offer valuation comfort, while mid- and small-caps are trading at significantly higher valuations. “Nifty is trading at around 20 times FY27 estimated earnings, while the NSE midcap and NSE smallcap indices are trading at 28 and 24 times FY27 estimated earnings, respectively. This makes it a stock picker’s market,” he said.

“Prospects for financials, autos, capital goods, pharmaceuticals, and hotels look good,” he added.

RIL, ICICI Bank, SBI, HDFC Bank lead fall

On the BSE Sensex, 27 of the 30 stocks traded in negative territory, with only Infosys, Tata Consultancy Services, and Titan in the green.

Shares of Reliance Industries, the country’s most valued stock, fell 1.29%, while banking majors ICICI Bank and HDFC Bank declined over 1% and 0.5%, respectively. Other laggards included Axis Bank, State Bank of India, and Kotak Mahindra Bank, indicating broad-based selling in the financial pack.

In the IT space, Infosys gained around 1%, while Tata Consultancy Services rose 0.44% amid value buying after a recent sharp correction. However, Tech Mahindra and HCL Tech slipped by up to 0.5%.

Sectorally, most indices traded in the red. The Nifty Realty index fell 1.78%, emerging as the top loser, followed by declines of over 1% in Nifty FMCG, Consumer Durables, and Auto. The Nifty Private Bank and Financial Services indices also slipped around 0.8–0.9%.

Metal and oil & gas stocks were marginally lower, while defensive pockets showed some resilience. The Nifty Pharma index edged up 0.17%, and the broader Healthcare index gained 0.13%, suggesting selective buying in defensive counters amid volatility.

Foreign institutional investors (FIIs) extended their buying for the second straight session on February 18, with net purchases worth ₹1,154 crore. Domestic institutional investors (DIIs) also remained net buyers for the fifth consecutive session, investing ₹440 crore in equities.

Hitesh Tailor, Research Analyst at Choice Equity Broking Private, advised investors to remain disciplined and selective, focusing on fundamentally strong stocks during market corrections. “Fresh long positions should be considered only after a sustained breakout of the Nifty above the 26,000 level, which would signal a more reliable improvement in overall market sentiment,” he said.

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