Weekly Market Pulse - Monday, 17th Feb
Markets Under Pressure: Key Lessons from Last Week & What to Watch This Week
Market Recap (What Happened This Week?)
The Indian stock market had a weak and uncertain week. Both Nifty 50 and Sensex ended lower, reacting to global concerns, inflation, and mixed earnings reports.
Nifty 50 lost 0.44% in one week and closed at 22,929.25.
Sensex fell 0.26%, ending at 75,939.21.
The market started the week on a strong note, but mid-week selling pressure erased the gains. Investors became cautious after U.S. trade tensions increased and India’s inflation data was higher than expected.
Banking and financial stocks remained strong, with some private banks making gains.
Small-cap stocks were hit hard, losing over 4% in a week.
Export-driven stocks like IT and Pharma struggled as trade concerns grew.
What caused the market to fall?
Global trade worries: U.S. trade policies affected investor confidence.
Higher inflation in India: CPI inflation rose to 5.6%, making investors think RBI may not cut interest rates again soon.
Weakness in small-cap stocks: Retail investors faced losses as mid- and small-cap stocks dropped.
Energy sector slowdown: Stocks like NTPC (-2.18%) and ONGC (-1.85%) fell as crude oil prices weakened.
Despite these factors, some large-cap stocks performed well, showing that investors still have faith in strong businesses.
Key Highlights (Changes in 1 Week)
Market Drops but Banking Stocks Hold Firm
Nifty and Sensex fell, but ICICI Bank (+0.80%) and Kotak Mahindra Bank (+1.46%) gained, keeping the financial sector stable.
Small-Cap Stocks Continue to Fall
Small-cap stocks lost another 4% this week, making retail investors worried.
Energy Stocks Drop Due to Crude Oil Weakness
NTPC (-2.18%) and ONGC (-1.85%) faced selling pressure as crude oil prices remained low.
Export Stocks Hit by Global Trade Issues
IT, Pharma, and Auto stocks struggled as global trade tensions rose.
Nestlé India and Bharti Airtel Show Strength
Nestlé (+1.11%) gained due to strong demand.
Bharti Airtel (+1.05%) benefited from 5G expansion and rising revenue per user.
Notable Stock Movements (1 Week Changes)
Adani Ports (-4.41%): Dropped due to trade worries and regulatory uncertainty.
Tata Steel (-1.32%): Declined due to falling global steel prices.
Mahindra & Mahindra (-1.26%): Fell despite strong auto sales numbers.
Nestlé India (+1.11%): Gained due to strong FMCG demand and better earnings.
Bharti Airtel (+1.05%): Rose due to growing 5G investments and higher revenue per user.
Looking Ahead (February 17 – February 21, 2025)
Big Companies Announce Quarterly Results
Earnings reports from HDFC Bank, Hindustan Unilever, and Infosys will affect market movements.
If results are better than expected, stocks may rise. If weak, there could be more selling.
New IPOs in Focus
Ajax Engineering and Hexaware Technologies are launching their IPOs.
Market mood will decide if IPOs get good demand.
Global Events to Watch
U.S. Federal Reserve Minutes (Feb 21): Could give clues about future interest rate cuts.
China’s GDP Data (Feb 19): Will impact commodity stocks in India, especially metals and energy.
India’s Flash PMI Data (Feb 23)
This will show how manufacturing and services businesses are performing in India.
A strong reading could boost market confidence.
Sectors to Watch
IT & Pharma: Could stay weak due to global trade tensions.
Banking & NBFCs: Loan growth and RBI’s next move will be key.
Auto & FMCG: Demand trends will be watched for growth signs.
Market Outlook (What to Expect Next Week?)
The stock market may remain volatile as global and domestic factors continue to play a role.
Banking and financial stocks may stay strong, as interest rates are still favorable for lenders.
Small-cap stocks could continue to struggle, as investors avoid risky bets.
Global trade news will affect IT, Pharma, and Auto stocks, which depend on international markets.
Investors will closely watch inflation trends, as rising prices may make RBI rethink further rate cuts.
What should investors do?
Stay focused on strong companies: Large-cap and fundamentally strong stocks may perform better.
Avoid high-risk small-caps for now: Until stability returns, mid- and small-cap stocks may remain weak.
Watch earnings results closely: Stocks will move based on how companies perform in this quarter’s earnings.
The next week will be important as earnings reports, IPOs, and global news will set the market direction.
Final Thoughts
The Indian stock market remains uncertain, with many factors influencing movements. It’s a time to be cautious but alert for opportunities. As always, staying informed helps in making better investment decisions.
Subscribe to our newsletter for daily market insights!
Kundan Sir...is your course still available ??
Glad to find you here Kundan ji
I purchased your course and thoroughly enjoyed it