Indian equity benchmarks faced a downturn, losing close to 1% over the week due to weak global cues and significant declines in the IT index. The Nifty decreased by 0.87% throughout the week and by 1.30% on the final trading day, closing at 25,471. Meanwhile, the Sensex concluded the week 1.25% lower at 82,626, marking a decline of 1.14%.
Sectoral performance remained negative, with all major indices closing in the red. Nifty Metal experienced the most significant drop of 3.3%, followed by realty at 2.2% and FMCG at 1.9%. The Nifty IT index hit a 10-month low but managed to recover slightly, closing 1.4% lower after selective buying.
Analysts highlighted challenges in the IT sector due to concerns about potential disruptions from rapid AI advancements impacting traditional service models and future revenue visibility. The US dollar strengthened following better-than-expected US January jobs data, reducing expectations of immediate interest rate cuts by the US Federal Reserve.
