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Indian Stock Market Gains Mildly Amid AI-Led IT Losses, Global Risks

Indian equity benchmarks managed mild weekly gains despite significant losses in the IT and media sectors. Global risk sentiment improved after a US Supreme Court ruling struck down most of former President Trump's tariffs implemented under emergency powers. Domestically, strong Manufacturing and Services PMI data reflected resilient demand conditions. However, rising US-Iran tensions and elevated crude oil prices are key monitorable events that could dictate market direction in the near term.

Key Points: Indian Stock Market Weekly Gains Amid IT Losses, Global Risks

  • Nifty gains 0.39% for the week
  • IT index among worst performers, down 2.07%
  • US Supreme Court ruling on tariffs boosts global sentiment
  • India's Manufacturing PMI hits 59.3, a 3-month high
  • Rising US-Iran tensions push Brent crude higher
2 min read

Indian stock market posts mild gains this week amid AI-related IT losses

Nifty and Sensex post mild weekly gains despite IT sector losses. Global cues, US tariff ruling, and geopolitical tensions shape market outlook.

"Continued institutional support and improving momentum indicators will be critical in determining whether the current rebound evolves into a sustained uptrend. - Analysts"

Mumbai, Feb 21

The Indian equity benchmarks posted mild gains on a weekly basis, despite several sessions of sharp declines in the IT index.

Nifty added 0.39 per cent during the week and added 0.46 per cent on the last trading day to settle at 25,571. At Friday's close, Sensex was up 316 points or 0.38 per cent at 82,814. It advanced 0.38 per cent during the week.

Sectoral performance remained mixed during the week, with all major indices ending in the red. Nifty media was the worst performer, down 2.46 per cent on a weekly basis, followed by capital markets, down 2.44 per cent and IT, down 2.07 per cent.

Global risk sentiment has improved meaningfully after the US Supreme Court struck down a majority of President Donald Trump's tariffs that were implemented under emergency powers.

The development buoyed global markets, with GIFT Nifty rising over 1 per cent, indicating the possibility of a gap-up opening for the Nifty at the start of the next week, analysts said.

Continued institutional support and improving momentum indicators will be critical in determining whether the current rebound evolves into a sustained uptrend.

On the domestic front, India's Manufacturing and Services PMI climbed to 59.3 in February, marking the strongest reading in three months, driven by robust output growth and new orders, reflecting resilient demand conditions.

Further, India signed the US Pax Silica agreement, marking a notable development on the trade and strategic front.

Analysts said that immediate support for Nifty is seen at 25,350, followed by 25,200, and resistance is placed at 25,650 and 25,720.

Broader indices showed divergence from the benchmark indices during the week, as the Nifty Midcap100 gained 0.13 per cent, while Nifty Smallcap100 lost 0.18 per cent.

Globally, rising US-Iran tensions elevated geopolitical risks, pushing Brent crude higher to $71.8 per barrel, extending its three-day gain to 6.6 per cent and triggering risk-off sentiment across markets. This will be the key monitorable event in the near term and will provide direction to the market, market participants said.

The stock market is likely to consolidate next week, tracking the geopolitical development along with the key US tariff ruling, India-US trade deal and Q3 GDP data.

- IANS

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Reader Comments

P
Priya S
As someone with a lot of IT stocks in my portfolio, this week was painful to watch. The AI hype seems to be causing a correction. Hope the sector finds its footing soon. The broader market holding up gives some comfort.
R
Rohit P
Consolidation was expected after such a strong rally. The key now is how we navigate the US-Iran tensions and crude prices. Our macros are strong, but global oil shocks hit us hard. Fingers crossed.
S
Sarah B
Interesting analysis. The US tariff ruling is a huge positive for global trade sentiment. The India-US 'Pax Silica' agreement is a strategic win that doesn't get enough attention. Long-term bullish for Indian markets.
V
Vikram M
Midcap and Smallcap underperformance is a concern. It shows retail investors might be losing steam. The rally needs to broaden for it to be healthy. Hope the GDP data next week brings some cheer.
K
Karthik V
With respect, the article focuses too much on daily fluctuations. For the common investor, the message should be about SIPs and long-term investing. These weekly gyrations are just noise. Stay invested, ignore the short-term volatility.

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