Stock market news: Benchmark indices NSE Nifty 50 and S&P BSE Sensex fell marginally on Thursday, February 29, tracking Asian peers as investors brace for key US and domestic economic data. The blue-chip index NSE Nifty 50 was up 0.0034 per cent at 21,951.90, while the BSE Sensex gained 0.15 per cent to 72,412.92, as of 09:30 am.

Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd said, "In yesterday's tumultuous session on Dalal Street, Nifty took a significant hit, closing well below the crucial 22,000 mark, while small-cap and mid-cap indices experienced a 2 per cent decline following SEBI's guidance to safeguard investor interests. The looming release of the January PCE index adds anxiety, as it could shape the narrative around potential Federal Reserve interest rate cuts. Until the inflation challenge is addressed, volatility is expected to persist."

"Technicals indicate a negative bias for Nifty and Bank Nifty, with today's trading session anticipated to be marked by volatility due to the monthly expiry of February F&O contracts. Attention is also on India’s GDP figures for Q4 2023 and the upcoming auto sales data for February. The recommended trades involve selling on Nifty and Bank Nifty, while value buying and bargain hunting are expected themes. Tata Motors and Infosys are viewed bullishly from an inter-month perspective, with Tata Motors identified as a top pick for immediate purchase, emphasising a momentum play strategy," Tapse added.

V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said “The market has suddenly turned unpredictable amidst high volatility. Resistance has become strong at the Nifty 22,200 level. The cut in Nifty by more than 1 per cent yesterday despite the FII selling getting neutralised by DII buying, is significant. This is due to the rebalancing of the positions a day ahead of the monthly expiry. The volatility will continue today, too, being the last day of the monthly expiry. Investors may wait for the volatility to subside.”

"A significant development is the communication from SEBI to AMFI suggesting that mutual funds set up a framework for protecting investors in mid and small-cap funds. Sustained flows of retail money into these funds have made their valuations excessive and difficult to sustain. More mid and small-cap funds are likely to impose restrictions on lump sum investments into the mid and small-cap schemes. This will benefit the large caps which are relatively fairly valued now. The correction in the broader market is likely to continue," he added.

While Reliance Industries, Hero Motocorp, Maruti Suzuki, Titan, M&M are among the early gainers, Bajaj Auto, BPCL, UPL, Cipla and Axis Bank are among the top losers in early trade on the Nifty 50 index.