Weekly Update-28 February 2025

NIFTY50

The index closed the week with a sharp decline of -2.94%, settling at 22,124.70. The week started on a weak note with a gap down on Monday, followed by persistent selling pressure throughout the day. As the week progressed, the market remained largely sideways for the next two sessions, lacking any major directional moves. However, on Friday, the index opened with a significant gap down and witnessed intense selling pressure throughout the day, eventually closing near the day's low. Going forward, key support is seen around 21,800, while resistance is placed near 22,500.

BANKNIFTY

The index closed the week with a decline of -1.3%, settling at 48,344.70. The week started on a weak note on Monday, followed by two days of sideways movement where the index consolidated within a narrow range. However, on Friday, renewed selling pressure dragged the index lower, with bearish sentiment prevailing throughout the session. Notably, private banks showed relative strength, losing fewer points compared to PSU banks, which underperformed. Moving forward, key support is seen around 47,800, while immediate resistance is placed near the 49,000 mark.

Worst Performing Sector of the week

The Nifty IT was worst performing sector of this week

Major losers include:-

Mphasis: down by 12.47%

L&T Mindtree: down by 11.94%

L&T Technology Services: down by 11.51%

Tech Mahindra: down by 9.8%

Important News:-

• The Indian stock market faced its worst downturn in 29 years, erasing $1 trillion in wealth. Factors such as global economic concerns, foreign investor withdrawals, and domestic challenges contributed to this unprecedented crash.

• The Indian midcap index experienced significant selling pressure, declining over 11% in February. Analysts attribute this to high valuations, sluggish earnings, and foreign institutional investor outflows, marking the largest drop since March 2020.

• The market breadth remained weak, with 3,218 declines against 776 advances. Additionally, 908 stocks touched 52-week lows, and 471 stocks hit lower circuits, indicating strong selling pressure across sectors.

• Following UltraTech's announcement, Polycab India's stock experienced a significant decline, reflecting investor apprehension about heightened competition. However, the shares rebounded by 3% the following day as investors reassessed the potential impact of UltraTech's entry.

• ICICI Bank's shares declined by 1.50% on Friday, closing at ₹1,203.10. Despite this drop, the bank's stock outperformed some competitors, such as IndusInd Bank Ltd., which fell by 5.41%, and Kotak Mahindra Bank Ltd., which declined by 2.34%.