Weekly Recap: Why Markets Fell 2% & What to Expect Next Week
Is the market correction over? Markets fell nearly 2% last week amid global AI concerns and rising geopolitical tensions. Dive into our weekly report for the top gainers, losers and our technical outlook for Nifty, Bank Nifty for the coming week.
Weekly Recap
D-Street saw a sea of red last week, with the Nifty closing 1.54% lower. What triggered the sell-off? Explore the biggest developments, overlooked stories and our outlook for the week ahead in your Weekly Report.
Slippery Slopes
- It was a blood-red week on D-Street, with key indices under pressure. The Nifty declined almost every single day, closing 1.54% lower than last week’s close.
- The India VIX tracked geopolitical developments and eased 4.6% during the week. However, it continued to spike intermittently as markets followed a downward trajectory.
The Big Stories
- Global cues remained negative on multiple fronts, including renewed concerns around AI sector prospects and escalating trade tensions, as President Trump signalled opposition to tariff refunds.
- Rising US–Iran tensions kept crude oil prices elevated amid concerns over potential disruptions through the Strait of Hormuz. For India, a major oil importer, higher energy prices add fresh macroeconomic pressure to an already fragile risk environment.
The Winners
- Hero MotoCorp emerged as the week’s top gainer, rising 4.5% as brokerages turned more constructive on its fundamentals and auto sector volume outlook.
- IndusInd Bank advanced 3.3%, supported by positive investor sentiment after the RBI assured the bank’s stability while initiating remedial steps to address earlier accounting discrepancies.
The Losers
- Eternal declined 8.6% last week, as investors weighed concerns around former CEO Deepinder Goyal’s focus on other ventures and the potential IPO of competitor Zepto later this year.
- Tech Mahindra fell 6.8%, in line with weakness across several IT majors, amid lingering concerns over AI-led disruptions to traditional business models.
Meanwhile…
- Statistical method revisions saw GDP growth revised upward to 7.8%. While this marks a slight moderation from the previous quarter’s 8.4% expansion, it continues to reflect underlying economic resilience.
- Major AI chipmaker Nvidia significantly beat fourth-quarter earnings expectations. However, the stock declined 7.4% over the week, as the strong results failed to meet heightened investor expectations.
Market Brief
Key Indices
Trending Stocks
Sector Insights
Market Outlook
Sectors To Watch
Our Take
- Geopolitical risks continue to remain elevated, and with global cues turning increasingly cautious, FIIs and large institutions maintained a clear risk-off stance last week.
- Markets are expected to stay headline-driven, which could keep volatility elevated in the near term.
- We believe this cautious undertone is likely to persist into next week, with the Nifty expected to trade in the 24,700 to 25,500 range as participants await stronger directional triggers.
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