Markets End Week Lower As Global Cues, IT Sell-Off Weigh On Sentiment

Indian stock markets ended the week on a subdued note, with benchmark indices slipping close to 1 per cent amid unfavourable global cues. Persistent selling in technology counters, influenced by losses on Wall Street, added to investor caution.

Over the week, the Nifty fell 0.87 per cent and dropped 1.30 per cent on Friday to close at 25,471.

The Sensex concluded the final session 1,048 points lower, a fall of 1.25 per cent, at 82,626, marking a weekly decline of 1.14 per cent.

Selling pressure extended across sectors, with every major index finishing in the red. The metal index led the losses, tumbling 3.3 per cent, while realty fell 2.2 per cent and FMCG declined 1.9 per cent.

The IT index slid to a 10-month low during the week before settling 1.4 per cent lower, as limited bargain buying reduced deeper intraday losses.

Market analysts observed that apprehensions surrounding artificial intelligence advancements continue to cloud the sector’s earnings outlook.

Stronger-than-expected US employment data for January bolstered the dollar, diminishing expectations of early interest rate reductions by the Federal Reserve.

Additional support for the greenback emerged from reports that Russia might re-engage with the dollar-based settlement framework, which also exerted pressure on precious metal prices.

Key Technical Levels to Watch

Technical analysts suggested that if the Nifty breaches the 25,400 level, it may head towards 25,100, whereas the 25,700–26,000 zone could act as a significant resistance band in the event of a recovery.

In contrast to the benchmarks, broader markets displayed relative stability. The Nifty Midcap100 edged down just 0.11 per cent, while the Nifty Smallcap100 posted a gain of 0.56 per cent.

In the coming week, investors are expected to monitor international economic developments, geopolitical shifts and discussions at the forthcoming India AI Impact Summit in New Delhi, as the corporate earnings season nears completion.

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