Weekly Market Recap: Nifty Soars 1.9%, Small Caps Lead the Rally

Liquide -

Weekly Recap

Markets finally saw some much-needed relief last week after three straight weeks of sell-offs. 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.

At long last!

  • It feels like ages since indices were in the green, but the bulls on D-Street finally got some good news and a reason to breathe easy.
  • The Nifty surged 1.93% last week, marking its biggest weekly gain of 2025. Encouragingly, no sector missed out on the rally.
  • In the broader market, the BSE Large-cap Index gained 2.4%, the BSE Mid-cap Index rose 3.3%, and the BSE Small-cap Index soared nearly 6%.

What changed?

  • Globally, the Trump administration put its hawkish trade stance on hold, pausing tariffs once again—though more policy flip-flops may still be on the horizon.
  • Domestically, strong February PMI data and a decline in global crude oil prices boosted sentiment, fuelling broad-based buying across sectors.

The winners

  • Bharat Electronics led the pack, soaring 12.5% as the defense sector gained momentum, buoyed by JP Morgan’s positive coverage, strong order inflows, and increased defense spending.
  • Tata Steel along with the metals sector, rallied 10.5% as reports of China’s plans to cut steel output and introduce fresh fiscal stimulus fueled optimism.

The losers

  • IndusInd Bank was the biggest laggard, dropping 5.4% after a bulk sale deal by Integrated Core Strategies and concerns over worsening NPA ratios.
  • Bajaj Auto slumped 4.2% to a 52-week low, weighed down by continued weakness in domestic two-wheeler sales.

Meanwhile…

  • The US economy added fewer jobs than expected in February, though the unemployment rate remained largely unchanged. However, consumer confidence saw a sharp decline.
  • The European Central Bank cut deposit rates again to 2.5%, signalling concerns over the potential economic damage from ongoing trade war fears.

Brief

Key Indices

Sectors

Stocks

Other Key Data

Market Outlook

Sectors to Watch

Our take

  • With persistent FII selling, volatile global cues, and weakening consumer confidence both domestically and internationally, last week’s rebound could lead to a phase of consolidation.
  • Consequently, we maintain a rangebound outlook for the Nifty, expecting it to trade between 22,200 and 22,900 levels in the coming week.

Discover Investment Opportunities with Liquide

Unlock the potential of informed investing with Liquide, featuring pioneering tools like LiMo an AI co-pilot for stock investing. Available on both Google Play Store and Apple Appstore, Liquide offers up-to-date market analysis, expert recommendations, and real-time insights to guide your investment decisions. Download the Liquide App today and enhance your financial journey with Liquide's cutting-edge features