StockMarket – Benchmarks Edge Higher Despite IT Sector Weakness
StockMarket – Indian benchmark indices managed to close the week in positive territory, even as technology stocks faced sustained pressure through multiple sessions. The overall gains remained modest, reflecting cautious investor sentiment amid mixed domestic and global cues.
Benchmarks End Week With Modest Gains
The Nifty 50 advanced 0.39 percent over the week. On Friday alone, the index rose 0.46 percent to settle at 25,571. The BSE Sensex also recorded a steady performance, climbing 316 points, or 0.38 percent, to close at 82,814. On a weekly basis, the Sensex registered a gain of 0.38 percent.
Despite volatility during the week, both indices managed to recover toward the end, supported by selective buying in heavyweight stocks.
Sectoral Indices Close in the Red
Sector-wise performance remained uneven. Most major sectoral indices ended lower for the week. The Nifty Media index emerged as the biggest laggard, slipping 2.46 percent. It was followed by the capital markets index, which declined 2.44 percent, and the IT index, which dropped 2.07 percent amid continued selling pressure in technology shares.
The weakness in IT stocks weighed on overall sentiment, although it was partially offset by strength in select defensive and financial counters.
Global Developments Lift Sentiment
Investor confidence received a boost after the US Supreme Court struck down a majority of tariffs imposed by President Donald Trump under emergency powers. The ruling improved global risk appetite and supported equity markets worldwide.
Reflecting this optimism, GIFT Nifty gained more than 1 percent, indicating the likelihood of a positive opening for domestic markets at the start of the upcoming week, according to analysts.
Market participants noted that sustained institutional inflows and strengthening technical indicators will be essential to determine whether the recent rebound can evolve into a more durable upward trend.
Strong PMI Data Signals Domestic Resilience
On the macroeconomic front, India’s Manufacturing and Services Purchasing Managers’ Index rose to 59.3 in February, marking its highest level in three months. The improvement was driven by firm growth in output and new business orders, suggesting resilient domestic demand conditions.
In addition, India signed the US Pax Silica agreement, a development viewed as significant in terms of trade and strategic cooperation between the two nations. Analysts believe such agreements could provide medium-term support to investor sentiment.
Technical Levels and Broader Market Trend
From a technical standpoint, analysts see immediate support for the Nifty at 25,350, followed by 25,200. On the upside, resistance levels are placed at 25,650 and 25,720. A decisive move beyond these levels could set the tone for the next directional trend.
Broader markets displayed a mixed trend. The Nifty Midcap 100 index edged up 0.13 percent during the week, while the Nifty Smallcap 100 index slipped 0.18 percent. This divergence suggests selective participation beyond the benchmark stocks.
Geopolitical Risks and Oil Prices in Focus
Global tensions, particularly between the United States and Iran, have added a layer of uncertainty to the outlook. Rising geopolitical risks pushed Brent crude prices to 71.8 dollars per barrel, extending a three-day rally to 6.6 percent. Higher crude prices can have implications for inflation and external balances, factors closely watched by investors.
Market participants indicated that developments related to US-Iran relations, the impact of the US tariff ruling, progress on the India-US trade deal, and India’s upcoming Q3 GDP data will remain key triggers in the near term.
Given these factors, analysts expect the stock market to consolidate in the coming week, with movements likely guided by global cues and domestic macroeconomic data.