Weekly Wrap: US-India Trade Deal & RBI Policy Fuel Markets; IT Stocks Slump
Indian markets closed 1.5% higher, marking a second week of gains as volatility eased. From the RBI’s rate decision to the US-India trade deal and major sectoral moves, explore the top gainers, losers, global triggers and next week’s outlook.
Markets closed the week on a positive note, ending 1.5% higher than last Friday. Explore the biggest developments, overlooked stories, and our outlook for the week ahead in your Weekly Report.
Regaining Ground
- In the extended Budget week, Indian equity indices built on their momentum, notching a second straight week of gains and closing 1.5% higher.
- Volatility also cooled considerably, as India VIX dropped 12%, signalling improving investor confidence amid evolving market cues.
The Big Stories
- The week both kicked off and wrapped up with big developments at home — from the Budget announcements to the RBI MPC deciding to keep repo rates unchanged at 5.25%.
- Globally, the spotlight was on the newly announced US-India trade deal, bringing tariffs on Indian exports down sharply from 50% to 18%.
The Winners
- Power Grid Corporation was the week’s top gainer after announcing higher-than-expected capex, while its Q3 profit also came in ahead of consensus estimates.
- Adani Enterprises followed close behind, with the stock surging 9.8% as brokerages identified group companies as key beneficiaries of the US-India trade deal.
The Losers
- The week’s biggest drags were tech heavyweights Infosys and Tech Mahindra, with Infosys logging its sharpest percentage fall since March 16, 2020.
- Both stocks were swept up in the broader global tech sell-off, as rising concerns around traditional IT services and outsourcing models intensified following rapid advances from Anthropic.
Meanwhile…
- India’s services sector bounced back in January after December saw the slowest expansion in 15 months, echoing a similar pickup in manufacturing activity.
- Oil prices moved higher last week amid escalating US-Iran tensions, as traders grew concerned that talks between the two nations were breaking down — raising the risk of potential military conflict.
Market Brief
Market Outlook
Our Take
- After a volatile week across global markets — especially in tech — investors back home may remain cautious in the near term as they track evolving global cues.
- We expect the Nifty to stay rangebound next week, likely trading between 25,400 and 26,000, with stock-specific moves driven largely by incoming earnings reports.
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