Domestic benchmark indices have been on edge throughout the last week as worries over slowing Quarter 3 earnings loom large. It will be interesting to see how the market reacts to the Union Budget and global inflation data, which is expected in the next few weeks. Foreign fund outflows, and US policies in the administration of Donald Trump will also be keenly watched.
On the macro-economic front, the focus would be on the inflation rate for December ahead of the RBI policy meeting in February. On the global front, all eyes will be on the US inflation numbers. The market will also keep an eye on China’s GDP numbers for the December quarter. Inflation numbers from Europe and the UK will also be considered.
In the last week, the Sensex and Nifty both declined by over one per cent. Nifty IT stood out with its steepest weekly drop in nearly a year, plunging six per cent amid sectoral weakness. This marked the second consecutive week of trading below the 200-day exponential moving average (EMA), signalling persistent bearish momentum. However, robust corporate earnings in certain sectors and a resilient midcap performance offer a silver lining. Among the week’s top performers were Hindalco, NTPC, HDFC Life, and Reliance Industries. On the flip side, HCLTech, Infosys, Wipro and Mahindra & Mahindra emerged as the top weekly losers.
Last week, Sectoral performance highlighted selective buying interest despite overall bearish sentiment. While IT and banking indices lost two percent each, sectors like Oil and Gas, Power, FMCG, and Metal gained around one per cent, reflecting defensive positioning by investors. In the coming week, the focus will remain on monitoring key support levels and global cues.