India’s benchmark indices ended last week on a sour note, with Sensex down 1,048 points (1.25%) at 82,626.76 and Nifty falling 336 points (1.30%) to 25,471.10. Gloomy international signals and AI’s looming threat to growth prospects triggered the rout, setting the stage for a crucial week ahead.
Investors will parse the Federal Reserve’s latest minutes on February 18 for clues on U.S. policy tightening, complemented by GDP releases. In India, RBI’s February 20 minutes could hint at repo rate adjustments, impacting borrowing costs across sectors.
The IT pack’s 8% weekly drubbing underscores broader concerns: generative AI and agentic systems may supplant conventional outsourcing, squeezing margins for leaders like TCS, Infosys, and Wipro. This narrative dominated trading, amplifying sector-specific pain.
Per Choice Broking, Nifty faces resistance at 25,700; support holds at 25,300. Downside breaches could extend losses, while upside breaks promise recovery rallies. Seasoned voices advocate for conservative strategies with rigorous stop-losses amid uncertainty.
Stabilizing gold and silver prices offer some relief in commodities, while FIIs’ consistent February buying—fueled by U.S.-India trade optimism—bolsters confidence. With these catalysts in play, the Indian market stands at a crossroads, poised for directional clarity.