How Did the Indian Stock Market Perform This Week Amid AI-Related IT Losses?
Synopsis
This week, despite significant losses in the IT sector, the Indian equity benchmarks managed to achieve modest gains. With geopolitical tensions and key economic agreements unfolding, what does this mean for future market trends? Explore the details of the Indian stock market's performance and its implications.
Key Takeaways
Indian equity benchmarks showed modest gains .
IT sector faced significant losses .
Global market sentiment improved post US tariff ruling .
Key support for Nifty at 25,350 .
Geopolitical tensions elevated risks in the market .
Mumbai, Feb 21 (NationPress) The Indian equity benchmarks experienced modest gains over the week, despite enduring several sharp declines in the IT sector.
Nifty rose by 0.39 percent throughout the week and surged 0.46 percent on the final trading day, closing at 25,571. The Sensex also saw an increase, climbing 316 points or 0.38 percent to stand at 82,814, marking a 0.38 percent weekly gain.
Sectoral performance showed a mixed trend, as all major indices ended in negative territory. The Nifty media index was the poorest performer, declining 2.46 percent for the week, followed closely by capital markets at 2.44 percent and IT at 2.07 percent.
Global market sentiment has notably improved following the US Supreme Court's decision to overturn most of President Donald Trump’s tariffs imposed under emergency powers.
This development has propelled global markets, with GIFT Nifty rising over 1 percent, suggesting a potential gap-up opening for the Nifty at the beginning of next week, according to analysts.
Ongoing institutional support and the enhancement of momentum indicators will be vital in determining whether this current rebound can develop into a sustained upward trend.
On the home front, India's Manufacturing and Services PMI rose to 59.3 in February, reflecting the strongest performance in three months, fueled by robust output growth and new orders, indicative of resilient demand conditions.
Additionally, India has signed the US Pax Silica agreement, marking a significant advancement in trade and strategic relations.
Analysts have indicated that immediate support for Nifty is expected at 25,350 and 25,200, while resistance levels are set at 25,650 and 25,720.
Broader indices displayed divergence from the benchmark during the week, as Nifty Midcap100 gained 0.13 percent, while Nifty Smallcap100 saw a decrease of 0.18 percent.
Globally, heightened tensions between the US and Iran have escalated geopolitical risks, pushing Brent crude prices up to $71.8 per barrel, marking a three-day gain of 6.6 percent and triggering risk-off sentiment across the markets. This situation is anticipated to be a key point of observation in the near future and will likely influence market direction, as expressed by market participants.
Looking ahead, the stock market is poised for consolidation in the upcoming week, influenced by geopolitical developments, the crucial US tariff ruling, the India-US trade agreement, and Q3 GDP data.
aar/na
Point of View
I believe that while the Indian stock market has shown some resilience amid IT sector challenges, external geopolitical factors and domestic economic indicators will play a pivotal role in shaping investor sentiment. We remain committed to providing unbiased, informative updates that reflect the evolving market landscape.
NationPress
20 Jun 2026
Frequently Asked Questions
What caused the gains in the Indian stock market this week?
The Indian stock market experienced gains due to improved global risk sentiment following the US Supreme Court's decision on tariffs and strong domestic PMI indicators.
How did the IT sector perform this week?
The IT sector faced significant declines, contributing to mixed sectoral performance, with losses of 2.07 percent noted for the week.
What are the key support and resistance levels for Nifty?
Analysts indicate immediate support for Nifty at 25,350 and 25,200, with resistance levels at 25,650 and 25,720.
What geopolitical events are affecting the markets?
Rising tensions between the US and Iran have heightened geopolitical risks, influencing market sentiment and driving crude oil prices higher.
What can investors expect in the coming week?
Investors should watch for potential consolidation in the stock market, influenced by geopolitical developments and economic data releases.
