The stock market saw a mixed bag last week, with the IT sector shining bright while small-cap stocks struggled to keep up. On Tuesday, the Sensex slipped 29.47 points to 75,968, and the Nifty 50 declined 14.20 points to 22,945.30. Despite early lows, the market showed resilience, bouncing back from losses throughout a volatile trading session. Gains in IT stocks were overshadowed by weaknesses in the auto and consumer goods sectors, highlighting the market’s delicate balance.
The broader markets took a hit, with the Nifty Smallcap falling by 1.6% and the Midcap declining by 0.2%. Analysts attributed the market’s performance to a mix of profit-booking, bottom-fishing, foreign fund outflows, and pressure on the Indian Rupee. Vinod Nair, Head of Research at Geojit Financial Services, noted concerns over FII outflows, premium valuations in small and mid-cap stocks, and the widening trade deficit impacting market sentiment.
Amidst the market fluctuations, some stocks stood out. NTPC emerged as the top gainer on the NSE, surging by 3.19%, followed by Tech Mahindra, Wipro, ONGC, and Apollo Hospitals. On the flip side, IndusInd Bank, Trent, BEL, UltraTech Cement, and M&M led the losses. The market breadth remained decisively negative, with more stocks declining than advancing on the BSE. Notably, a large number of stocks hit their 52-week lows, signaling a broader market weakness.
Prashanth Tapse, Senior VP at Mehta Equities, highlighted the cautious investor sentiment amid rising foreign fund outflows and the weakening rupee. Meanwhile, the rupee closed at 86.91 against the US dollar, driven by continued foreign outflows and rising crude oil prices. Jateen Trivedi of LKP Securities predicted further rupee weakness in the near term, with a range expected between 86.75-87.25.
In the commodities market, gold prices continued to climb, supported by global uncertainties and a weaker dollar. WTI crude oil remained stable around $71.40 per barrel following Ukrainian drone attacks on Russia’s pumping station. Shrikant Chouhan, Head of Equity Research at Kotak Securities, mentioned the market’s weak short-term texture, while Nandish Shah from HDFC Securities noted the Nifty’s recovery after an eight-session losing streak.
Looking ahead, investors are keeping an eye on the release of minutes from the Federal Reserve and RBI meetings, as well as key speeches for further market direction. Foreign fund outflows, which have totaled nearly ₹1 lakh crore in 2025, continue to impact market sentiment as global funds shift focus to other markets like China and Europe. As the market navigates these challenges, investors remain on edge, awaiting signs of stability and growth in the coming weeks.
