Indian stock markets remained in a consolidation phase this week, with benchmark indices Sensex and Nifty slipped over half a per cent amid weak global cues and trade war concerns.
Sensex and Nifty started the week on a positive note with a gain in a range-bound session. Buying interest in pharma, metal, and energy stocks helped indices recover from their longest losing streak in two years on February 17.
The broader sentiment was cautious as investors reacted to renewed tariff threats from the US which led to profit-taking in large-cap stocks.
Midcap and smallcap indices outperformed as witnessed buying interest in select counters as both the indices closed the week higher with a gain up to 2 per cent.
The market volatility comes at a time when concerns over reciprocal tariffs and global economic stability are influencing investor sentiment.
“The US President Donald Trump’s announcement of reciprocal tariffs hit export-oriented industries hard, particularly the pharmaceutical sector, which saw significant underperformance,” said Vinod Nair from Geojit Financial Services.
Looking ahead, the markets are expected to remain volatile in the upcoming holiday-shortened week due to the monthly expiry of derivatives contracts, according to reports.
A consolidation or earnings-driven growth could reset valuations and make Indian equities more attractive.
Foreign institutional investors (FIIs) flows could return to India in the next 3–6 months, as the economy and macro factors in the long term are favourable, said Vaibhav Porwal, Co-Founder, Dezerv.
“Strong domestic demand, digital transformation, and infrastructure push are long-term drivers that are likely to bolster corporate earnings and sustain growth,” he noted.
Additionally, investors will keep an eye on key economic data, including the US Core PCE Price Index and India’s GDP figures, for further direction.
The Indian stock markets ended lower on Friday as the Sensex declined by 424.90 points to close at 75,311.06, while the Nifty slipped 117.25 points to settle at 22,795.90.
The broader markets remained subdued as investors adopted a cautious stance amid global uncertainties.
(With inputs from IANS)