Indian Developments
Indian equity markets closed the week on a positive note, with benchmark indices extending gains supported by strong sectoral performance and improvement in market breadth. The NIFTY 50 rose 1.08% over the week to 25,693.70.Broader indices outperformed, with the NIFTY Midcap 150 up 2.06%, NIFTY Small cap 250 up 1.50% supported by broad-based gains across mid- and small-cap indices and strong domestic sector rotation.
India–US trade deal, which provided a notable tailwind to India’s external sector outlook. US reduced tariffs on Indian goods from 50% to 18% that can offer support to Indian exporters.
FIIs booked net outflows of ?4,894 crore during the week, while DIIs provided counterbalancing support with net inflows of ?3,742 crore, cushioning benchmark weakness.
Volatility eased significantly as India VIX declined 10.70%, indicating greater stability in market sentiment.
Sectoral Developments
Sectoral performance remained mixed:
Major Laggards: Information Technology (IT): –7.34%, the worst weekly performer. Metals: –4.29%, dragged by global commodity softness. PSU Banks: –1.53%, continuing their corrective phase. Defence: –3.91%. India Digital: –3.06%.
Gainers: Consumer Durables: +7.10%, the strongest gainer of the week. Realty: +6.23%, supported by steady demand trends. India Consumption: +3.62%. FMCG: +2.69%, reflecting defensive buying interest. Energy: +3.16%. Infrastructure: +4.15%, aided by continued capex momentum.
Global Developments
Global cues remained mixed:
US Markets: Investor sentiment was subdued due to tariff uncertainty, weakening consumer confidence, and concerns around economic growth. The S&P 500 saw fluctuations as inflation and policy outlook remained in focus.
Europe: Economic activity stagnated, though equity markets held steady amid geopolitical tensions and expectations of monetary easing by the ECB.
Asia: Chinese markets remained soft, with demand indicators weakening, adding pressure to Asian currencies including the INR.
Other Markets
Source: www.nseindices.com; MCX Gold Prices; Economic times, Bloomberg.
Data for week ended on February 06, 2026.
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