StockMarket – Indian Benchmarks Slide Amid IT Sector Weakness

StockMarket –  Indian equity markets closed the week on a subdued note, with benchmark indices slipping nearly one per cent as global uncertainties and weakness in technology stocks weighed on investor sentiment. A sharp downturn in information technology shares, mirroring losses on Wall Street driven by concerns around artificial intelligence, contributed significantly to the decline.

Benchmarks End Week in Negative Territory

The Nifty index fell 0.87 per cent over the week and dropped 1.30 per cent on Friday to settle at 25,471. The Sensex ended the final session down by 1,048 points, or 1.25 per cent, at 82,626. On a weekly basis, the Sensex registered a fall of 1.14 per cent.

Market breadth remained largely weak, with most sectoral indices closing in the red. Selling pressure intensified toward the latter part of the week as global cues turned cautious and investors trimmed positions in rate-sensitive and export-driven stocks.

Metal and Realty Stocks Under Pressure

Among sectoral performers, Nifty Metal emerged as the biggest laggard, losing 3.3 per cent during the week. Realty stocks followed, declining 2.2 per cent, while FMCG shares slipped 1.9 per cent. The broad-based decline reflected concerns about global demand trends, currency movements, and near-term earnings visibility.

The Nifty IT index, which has been under sustained pressure in recent sessions, touched its lowest level in ten months before recovering slightly to close 1.4 per cent lower. Selective buying during intraday trade helped limit deeper losses, but the overall tone remained cautious.

AI Concerns Cloud IT Sector Outlook

Market analysts noted that the IT sector continues to face structural challenges. Rapid developments in artificial intelligence have sparked questions about how traditional outsourcing and service models may evolve. Investors are closely watching how companies adapt to new technology trends and whether these changes could affect revenue growth in the coming quarters.

Weak cues from US technology stocks added to the pressure. Concerns about AI-driven disruptions and global demand have prompted investors to reassess valuations in the sector.

Dollar Strength Adds to Global Uncertainty

The US dollar strengthened during the week after January employment data in the United States came in stronger than expected. The robust jobs figures dampened hopes of an immediate interest rate cut by the US Federal Reserve, pushing bond yields and the dollar higher.

Additional support for the dollar came from media reports suggesting that Russia might consider rejoining the dollar-based settlement system as part of a broader economic understanding with the United States. The development exerted downward pressure on precious metal prices and added another layer of volatility to global markets.

Technical Levels in Focus

Technical analysts observed that a sustained break below the 25,400 level on the Nifty could trigger further downside toward the 25,100 zone, where a previous price gap exists. On the upside, the 25,700 to 26,000 range is expected to act as a key resistance area if markets attempt a rebound.

Despite weakness in the frontline indices, broader markets showed relative resilience. The Nifty Midcap100 slipped just 0.11 per cent during the week, while the Nifty Smallcap100 gained 0.56 per cent, indicating selective buying interest in smaller companies.

Sector Rotation and Key Events Ahead

Apart from IT, sectors such as FMCG and real estate may remain vulnerable if volatility persists. In contrast, banking, automobile, energy, and select metal stocks are expected to display comparatively stronger momentum, according to market participants.

With the corporate earnings season nearing its end, investors are likely to turn their focus to global macroeconomic signals and geopolitical developments. Attention will also be on insights emerging from the India AI Impact Summit scheduled to take place in New Delhi next week, which could influence sentiment toward technology-related counters.

Overall, market participants are expected to remain cautious as they navigate global currency movements, interest rate expectations, and evolving technology trends.