Indian equity markets witnessed a sharp and synchronized selloff on Saturday, February 1, with benchmark indices closing near the day’s lows, reflecting heightened risk aversion across large-cap, banking, and midcap segments.
The Nifty 50 fell 495 points, or 1.96%, to settle at 24,825.45, erasing recent gains as selling pressure intensified across index heavyweights. The decline was broad-based, with all major derivative-linked indices ending firmly in the red.
The Nifty Bank index slipped 1,193 points (–2.00%) to 58,417.20, underscoring sustained pressure in frontline banking stocks. Valuations in the banking space remain relatively moderate, with the index trading at a P/E of 15.80 and P/B of 2.09, suggesting that the selloff was more sentiment-driven than valuation-led.
Among broader indices, the Nifty Next 50 declined 2.18% to 66,360.55, while the Nifty Financial Services index dropped 2.31% to 26,699.10, highlighting weakness across non-banking financials as well.
The sharpest correction was seen in the midcap space. The Nifty Midcap Select tumbled 2.83%, closing at 13,020.25, as investors aggressively booked profits amid relatively stretched valuations. The index currently trades at a P/E of 27.40 and P/B of 4.29, significantly higher than large-cap peers, making it more vulnerable during risk-off phases.
From a valuation perspective, the Nifty 50 is now trading at a P/E of 21.57 and P/B of 3.38, with a dividend yield of 1.30%, while the Nifty Next 50 offers a slightly higher dividend yield of 1.44%, indicating selective value pockets despite near-term volatility.
