Weekly Market Recap: Nifty Crashes, IT Stocks Bleed & What Lies Ahead!

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Weekly Recap

Markets ended a third consecutive week in the red, with Friday marking their worst single-day decline of 2025. Here's our take on this week gone by, some stories you might have missed out on, and our thoughts on what to do going ahead, in your weekly stock market report.

Grab your parachutes

  • D-Street witnessed absolute carnage last week, with Nifty tumbling 2.94% compared to last Friday, led by a sharp selloff in IT stocks. 
  • The broader market performed even worse, with the BSE Large-cap Index dropping 3.4%, the BSE Mid-cap Index falling 4.4%, and the BSE Small-cap Index plunging 6%. 
  • Volatility spiked sharply as India VIX surged on Friday, with Nifty suffering its worst intraday fall of 2025 so far.

What went so wrong?

  • A significant portion of the sell-off was driven by weak global cues, particularly after the Trump administration reimposed tariffs on China, Mexico, and Canada.
  • Nvidia's earnings report also fuelled market volatility, as concerns grew over AI-related expenditures and sector valuations.

The winners

  • HDFC Bank gained traction after its CFO shared optimistic growth plans for its loan securitization business over the next 3 to 5 years, boosting investor sentiment.
  • Shriram Finance and other NBFCs performed well as the RBI lowered risk weights on bank finance to NBFCs and microfinance loans, a move expected to enhance credit availability.

The losers

  • IT stocks were in freefall last week, as previously mentioned, with the biggest losers of the week being IT giants Tech Mahindra and Wipro
  • The sector followed the slump in Wall Street and Nasdaq, as concerns over AI spending, fresh tariffs, and weakening global economic indicators weighed on sentiment.

Meanwhile…

  • India’s GDP for the quarter ending in December grew by 6.2% year-over-year but fell short of the RBI’s estimate of 6.8% and economists’ consensus of 6.3%.
  • The US PMI reading for February came in well below expectations, placing private sector activity at a 17-month low.

Brief

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Other Key Data

Market Outlook

Sectors To Watch:

Our take

  • With a flood of news for investors to digest and geopolitical risks escalating daily, buying activity is likely to remain subdued.
  • We expect the Nifty to stay range-bound in the coming week with a negative bias, fluctuating between 21,600 and 22,400 levels.


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