Mumbai’s stock market is bracing for a pivotal week after last Friday’s sharp decline, where the BSE Sensex plunged 1,048 points or 1.25% to close at 82,626.76, and the NSE Nifty shed 336 points or 1.30% to end at 25,471.10. Weak global cues and fears over AI’s economic disruptions fueled the sell-off, leaving investors eyeing key domestic and international triggers.
Top on the watchlist is the U.S. Federal Reserve’s policy meeting minutes, due February 18, which could signal future interest rate paths amid ongoing inflation battles. U.S. GDP data will follow, potentially swaying global sentiment. Closer home, the Reserve Bank of India’s monetary policy minutes on February 20 will offer insights into liquidity and rate cut expectations.
The IT sector, battered by an 8% drop in the Nifty IT index, remains under scrutiny. Giants like TCS, Infosys, and Wipro saw heavy pressure as concerns mount that generative and agentic AI could erode demand for traditional outsourcing. Investors fear this tech shift might crimp future earnings for these bellwethers.
Choice Broking highlights Nifty resistance at 25,700 and support at 25,300. A breach below support could accelerate downside, while a breakout above resistance might spark a rebound. Experts urge strict stop-losses and range-bound trading in this volatile setup.
Gold and silver prices, after an initial dip, are stabilizing, with eyes on global commodities. FIIs have been net buyers most days in February, bolstered by improved India-U.S. trade ties, providing a counterbalance to domestic jitters. As these factors converge, the market’s direction hangs in the balance, demanding cautious navigation from traders.