The Indian equity benchmarks saw slight gains for the week, despite the IT index experiencing sharp declines. Nifty increased by 0.39% over the week and added 0.46% on the final trading day, closing at 25,571. Meanwhile, Sensex rose by 316 points or 0.38% to reach 82,814 by the end of the week.
Sectoral performance varied during the week, with major indices closing in the negative. Nifty media was the weakest performer, dropping by 2.46% weekly, followed by capital markets at 2.44% and IT at 2.07% down.
Global market sentiment improved significantly after the US Supreme Court invalidated most of President Donald Trump’s emergency tariff measures. This positive development boosted global markets, with GIFT Nifty surging over 1%, hinting at a potential gap-up opening for Nifty next week, as per analysts’ observations.
Continued institutional backing and improving momentum indicators will play a crucial role in determining whether the ongoing market rebound transitions into a sustained uptrend. India’s Manufacturing and Services PMI climbed to 59.3 in February, the highest in three months, driven by strong output growth and new orders, reflecting robust demand conditions.
India recently signed the US Pax Silica agreement, marking a significant milestone in trade and strategic relations. Analysts highlighted that Nifty’s immediate support levels are at 25,350 and 25,200, with resistance at 25,650 and 25,720.
Broader indices diverged from the benchmarks during the week, with Nifty Midcap100 gaining 0.13% while Nifty Smallcap100 declining by 0.18%. Geopolitical tensions between the US and Iran raised global risks, pushing Brent crude prices to $71.8 per barrel, a 6.6% increase over three days, prompting risk-off sentiment in markets.
Market participants anticipate the stock market to consolidate in the upcoming week, closely monitoring geopolitical developments, the US tariff ruling, India-US trade negotiations, and Q3 GDP data.
