Mumbai, Feb 14 (NationPress) The Indian equity benchmarks experienced a decline of nearly 1 percent this week, influenced by unfavorable global indicators and significant drops in the IT index, which mirrored Wall Street's losses driven by fears surrounding AI advancements.

The Nifty index decreased by 0.87 percent over the week, falling 1.30 percent on the final trading day, landing at 25,471. At the end of trading on Friday, the Sensex fell by 1,048 points, or 1.25 percent, closing at 82,626. Throughout the week, it registered a decline of 1.14 percent.

Sector-wise, the performance remained largely negative, with all major indices ending in the red. The Nifty Metal index was the poorest performer, dropping 3.3 percent, followed by real estate with a 2.2 percent decline and the FMCG sector down by 1.9 percent.

The Nifty IT index fell to a ten-month low before finishing 1.4 percent lower, despite some selective buying helping to mitigate intraday losses.

Market analysts noted that the IT sector continues to grapple with challenges as rising concerns grow that swift advancements in AI could disrupt traditional service models and impact future revenue projections.

Meanwhile, the US dollar strengthened due to stronger-than-expected job data from the US in January, which diminished anticipations for imminent interest rate cuts from the US Federal Reserve.

The dollar gained further momentum following media reports suggesting that Russia might consider rejoining the dollar settlement system in a potential economic agreement with the US, adding pressure to precious metals.

Analysts project that a break below the 25,400 mark in Nifty could lead to a movement towards the 25,100 gap area. Conversely, the 25,700–26,000 zone is anticipated to serve as a robust resistance level should a recovery occur.

The broader indices displayed a divergence from the benchmark indices throughout the week, with the Nifty Midcap100 declining only 0.11 percent, while the Nifty Smallcap100 saw a gain of 0.56 percent.

Aside from IT, the FMCG and realty sectors also seem susceptible to further declines, while banking, automotive, energy, and select metal stocks are expected to maintain relatively better performance, according to market participants.

Looking ahead, investor focus is likely to shift towards global macro trends as the earnings season concludes. Evolving geopolitical dynamics and significant insights from the upcoming India AI Impact Summit in New Delhi next week will also be key factors for investors.

aar/na