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Indian Share Market Weekly Roundup: February 3-7, 2025
The Indian stock market navigated a volatile week marked by mixed reactions to policy changes, corporate earnings, and global cues. Here’s a breakdown of the key developments and trends from the past week, distilled from real-time updates and macroeconomic shifts.
1. Market Performance at a Glance
- Benchmark Indices: The BSE Sensex closed at 77,860.19, down 0.25% for the week, while the Nifty 50 settled at 23,559.95, dipping 0.18% .
- Market Capitalization: BSE’s total market cap fluctuated between ₹42.03 trillion and ₹42.80 trillion, reflecting investor caution amid global trade tensions and foreign institutional investor (FII) outflows .
- Top Gainers: Tata Steel (+4.34%), Bharti Airtel (+3.60%), and UltraTech Cement (+1.45%) led the rally, driven by sector-specific optimism .
- Top Losers: ITC (-2.38%) and SBI (-2.03%) faced profit-booking amid broader market weakness .
2. RBI’s Rate Cut Fails to Lift Sentiment
The Reserve Bank of India (RBI) cut the repo rate by 25 basis points to 6.25%, its first reduction since May 2020, but markets responded tepidly. The central bank revised its FY25 GDP growth forecast downward to 6.4% (from 6.6%) and projected 6.7% growth for FY26 . Investors remained wary of global uncertainties, including geopolitical tensions and a strengthening US dollar, which could pressure import costs .
3. Foreign Investor Exodus Continues
- FII Outflows: Foreign institutional investors (FIIs) sold ₹723 billion ($8.4 billion) in equities in January 2025, marking their fourth consecutive month of net selling. Key sectors like BFSI and IT saw heavy outflows .
- Domestic Resilience: Domestic investors partially offset FII exits, with equity mutual funds recording 45 consecutive months of inflows .
4. Corporate Earnings: A Mixed Bag
- Reliance Power: Shares surged after the company reported strong Q3 2025 results, driven by improved operational efficiency .
- Mid-Cap Updates: Companies like Mold-Tek Packaging and Borosil posted modest quarterly results, with net profits marginally lower year-on-year, leading to flat stock movements .
- Energy Sector Boost: Reliance Industries signed a 10-year crude oil supply deal with Russia’s Rosneft, valued at ~$13 billion annually, bolstering energy stocks .
5. Sectoral Shifts and Global Headwinds
- Cyclicals vs. Defensives: Banking, IT, and FMCG sectors faced selling pressure, while metals and telecom gained traction .
- Global Risks: Concerns over US policy under President Trump and rising bond yields weighed on emerging markets like India. Analysts flagged potential corrections in small- and mid-cap stocks due to stretched valuations .
6. Market Outlook for the Coming Weeks
- Nifty Targets: Analysts polled by Reuters expect the Nifty to reach 25,000–27,500 by December 2025, though near-term volatility is likely amid earnings downgrades and IPO overhangs .
- Key Themes to Watch:
- Rural Demand: Government welfare schemes and agricultural growth could drive affordable consumption sectors .
- Private Capex Cycle: A revival in corporate investments may support industrials and infrastructure stocks .
Conclusion: Navigating Uncertainty
The Indian share market remains a tale of resilience and caution. While domestic liquidity and structural reforms underpin long-term growth, global headwinds and valuation concerns demand a balanced approach. Investors are advised to stay attuned to macroeconomic indicators, corporate earnings trends, and geopolitical developments in the weeks ahead.
