Benchmark indices tumbled about 2 per cent on Friday, capping one of the most turbulent weeks for domestic equities as investors fretted that the West Asian conflict could drag on for weeks or even months.
Analysts predict that the ongoing conflict in West Asia, crude oil price fluctuations, and the US Federal Reserve's interest rate decision will significantly influence the Indian equity market this week.
India's foreign exchange reserves decreased by USD 7.052 billion to USD 709.759 billion in the week ending March 13, according to the Reserve Bank of India (RBI). This decline follows a previous drop and comes after reserves reached an all-time high in February.
Inflation data, trading activity of foreign investors and global trends would dictate sentiment in the stock market this week, according to analysts.
India's forex reserves dropped by $11.683 billion to $716.810 billion during the week ended March 6, the RBI said on Friday.
India's foreign exchange reserves have surged to an all-time high, reaching USD 728.494 billion, according to the Reserve Bank of India. This increase is attributed to a rise in foreign currency assets and gold reserves.
Macroeconomic data, global geopolitical developments and rising concerns over AI-related disruptions are likely to dictate sentiment in the stock market next week, even as investors may remain cautious amid ongoing volatility, according to analysts.
India's forex reserves decreased by $2.119 billion to $723.608 billion during the week ended February 20, according to the RBI.
India's forex reserves jumped $8.663 billion to hit a new all-time high of $725.727 billion in the week ended February 13, the RBI said on Friday.
The rupee declined 31 paise to settle at 90.65 against the US dollar on Friday, weighed down by geopolitical uncertainties over the US-Iran talks, and a sharp rise in global crude oil prices.
India's forex reserves dropped by $6.71 billion to $717 billion during the week ended February 6, the RBI said on Friday.
The previous largest weekly decline was recorded in the week ended November 15, 2024.
The selloff in domestic information technology stocks intensified on Friday, with the Nifty IT index sliding as much as 5.2 per cent during the session before paring losses to close 1.44 per cent lower.
Stock market is gearing up for an eventful week ahead where key triggers such as quarterly earnings from corporates, the US Fed interest rate decision and the upcoming Union Budget for 2026-27 would grab the limelight, analysts said.
The total reserves increased to $701.3 billion on the back of a rise in foreign currency assets which increased by $9.6 billion to $560 billion during the reported week.
Remittances from West Asia in March rose sharply amid the conflict in the region, with industry insiders estimating inflows to be 20-30 per cent higher than what is usual in a month.
After three consecutive months of heavy selling, foreign portfolio investors (FPIs) turned net buyers in the first week of February, infusing more than Rs 8,100 crore in Indian equities, aided by improving risk sentiment, along with a trade deal with the US.
India's forex reserves jumped by another $14.36 billion to a new all-time high of $723.77 billion during the week ended January 30, the Reserve Bank said on Friday.
In an event-heavy week ahead, stock markets are expected to track Q3 corporate earnings from several blue-chip firms, including TCS and Infosys, while inflation data and global trends would also dictate investors' sentiment, analysts said.
The UK High Court has concluded the hearing for Nirav Modi's application to reopen his extradition appeal, focusing on claims of potential torture during interrogations in India. The court has reserved its judgement.
Sensex and Nifty post steepest weekly loss in over a year, falling nearly 3 per cent.
The Swadeshi Jagran Manch (SJM) is advocating for the termination of the moratorium on customs duties for electronically transmitted digital products, arguing that it hinders self-reliance, causes revenue losses, and restricts India's ability to tax emerging technologies like AI.
Trading pattern in the stock market this week will largely depend on the ongoing Q3 earnings announcement from corporates, global trends, and foreign fund movement, analysts said. Moreover, geopolitical developments and any update on trade negotiations would also be keenly tracked by investors, experts noted.
Indian equities declined on Friday, with the benchmark Nifty posting its worst weekly fall since September, as foreign investor sentiment remained weak amid tepid earnings growth and little progress on the India-US trade front.
'Periods of geopolitical uncertainty often see a rise in coordinated cyber threats, disinformation campaigns, and infrastructure targeting.'
S&P Global Ratings warns that Indian oil marketing companies like IOC, BPCL, and HPCL may face reduced profit margins due to rising crude oil prices and government pressure to maintain stable retail prices.
Indian artificial intelligence (AI) startup Sarvam launched two indigenous large language models (LLMs) specifically trained on Indian languages on Wednesday.
The Indian rupee crashed to a record closing low against the US dollar due to rising global crude oil prices, a strengthening dollar, and geopolitical tensions in the Middle East.
Mumbai hotels and restaurants are facing potential closures due to a critical shortage of commercial LPG cylinders, with similar disruptions reported across India. The crisis stems from revised government priorities for domestically produced natural gas, impacting the hospitality sector and potentially affecting tourism.
Macroeconomic data announcements, global trends and trading activity of foreign investors would be major driving factors for market movement this week, analysts said. Unabated capital infusion by domestic institutional investors have supported the positive trend in the stock market last week, traders said.
Indian officials will visit the US to finalise the legal text for an interim trade agreement, expected to be signed in March, focusing on duty concessions and reciprocal tariffs.
The India AI Impact Summit 2026 saw investment pledges of USD 240 billion from major players like Reliance, Adani, Google, Lightspeed Ventures, and Tata, signalling a significant boost to India's AI infrastructure and development.
A fall in the Nifty 50 to around 19,000 is not impossible, but that would likely require nuclear options to be exercised.
A host of macroeconomic data announcements, global trends and trading activity of foreign investors would dictate investors' sentiment in the stock market this week, analysts said. Besides, auto sales data will be closely tracked, experts noted.
Anthropic's Claude AI chatbot experienced a second outage within 24 hours, impacting users in various regions. The disruption follows a previous outage and comes amid scrutiny over the AI's capabilities and potential uses.
With Gulf countries emerging as popular destinations for Indian weddings and pre-wedding shoots, the March-April season had seen a flurry of bookings.
The message is becoming clearer: Employees who fail to meaningfully integrate AI into their work risk falling behind in performance assessments.
A senior government official asserts India's independence in purchasing Russian oil, stating that US sanctions waivers merely remove friction but do not dictate India's energy policy. The official highlights India's commitment to energy security and affordability for its citizens.
'Statutory power must be exercised in a manner that is fair, proportionate, and not excessive.' 'The authority must demonstrate a rational nexus between the property frozen and the alleged offence.'
Foreign investors pulled out Rs 21,000 crore (around $2.3 billion) from Indian equities over the last four trading sessions amid deteriorating global risk sentiment triggered by the West Asia crisis.
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