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Markets witness selling pressure in passing week amid escalating geopolitical tensions
Feb-27-2026

Indian markets witnessed bloodbath in passing week as geopolitical tensions escalated after Pakistan and Afghanistan declared open conflict, while US-Iran talks concluded without a resolution. Also, renewed tariff-focused comments from the US President reignited global trade concerns. Moreover, selling in IT stocks amid AI-related disruptions, also weighed on sentiments.

Some of the major developments during the week are:

Growth in eight key infrastructure sectors eases to 4% in January: The Ministry of Commerce & Industry in its latest data has showed that the output of eight key infrastructure sectors slowed down to 4 per cent in January 2026 as compared to 5.1 per cent in the same month last year.

India, Brazil sign agreement to support MSMEs, green finance: India and Brazil have entered into Memorandum of Understanding (MoU) to explore areas of mutual collaboration for the benefit of Micro, Small, and Medium Enterprises (MSMEs) and facilitate their access to green finance.

New CPI series to reflect Indian households' consumption patterns, reduce volatility: RBI Governor Sanjay Malhotra has said that new CPI inflation series based on 2024 prices will better reflect Indian households' consumption patterns and reduce volatility, and it will help in better CPI estimation.

Indian economy under revised series to grow at 8.1% in Q3FY26: A research report from State Bank of India's (SBI’s) Economic Research Department has showed that Indian economy is likely to record growth rate close to 8.1% for Q3FY26 under the revised series with the new base year of 2022-23.

Indian companies to sustain 8-10% Y-o-Y revenue growth in Q4 2025-26: With resilient rural demand and a gradual recovery in urban consumption, ICRA has estimated that Indian companies to sustain favourable Y-o-Y revenue growth of 8-10% in Q4 2025-26 (vis-a-vis 10.6% YoY increase in Q3 2025-26).

BSE movement for the week

The Bombay Stock Exchange (BSE) Sensex slipped 1527.52 points or 1.84% to 81,287.19 during the week ended February 27, 2026. On the sectoral front, S&P BSE Realty was down by 310.05 points or 4.86% to 6,067.58, S&P BSE TECK was down by 710.76 points or 4.35% to 15,629.53, and S&P BSE Information Technology was down by 1,296.76 points or 4.18% to 29,754.94 were the top losers, while S&P BSE Metal was up by 871.72 points or 2.20% to 40,424.48, S&P BSE Oil & Gas was up by 618.55 points or 2.13% to 29,595.66, and S&P BSE Healthcare was up by 831.99 points or 1.93% to 43,917.47 were the top gainers.

NSE movement for the week

The Nifty slipped 392.60 points or 1.54% to 25,178.65. On the National Stock Exchange (NSE), Nifty IT was down by 1400.20 points or 4.38% to 30,603.85, Bank Nifty was down by 643.00 points or 1.05% to 60,529.00, and Nifty Mid Cap 100 decreased 398.35 points or 0.67% to 59,115.60, while Nifty Next 50 gained 257.25 points or 0.37% to 69,710.90.

FII transactions during the week

Foreign Institutional Investors (FIIs) were net buyers in equity segment in the week, with gross purchases of Rs 82,118.89 crore and gross sales of Rs 76,415.52 crore, leading to a net inflow of Rs 5,703.37 crore. They also stood as net buyers in the debt segment with gross purchases of Rs 11,994.01 crore against gross sales of Rs 9,061.82 crore, resulting in a net inflow of Rs 2,932.19 crore. In hybrid segment, FIIs stood as net sellers, with gross purchases of Rs 127.47 crore and gross sales of Rs 2,743.20 crore, leading to a net outflow of Rs 2,615.73 crore.

Industry and Economy

Highlighting India’s expanding global trade footprint, Commerce and Industry Minister Piyush Goyal has said that India has concluded nine free trade agreements (FTAs) in recent years, covering 38 countries with strong per capita incomes. He said these agreements provide India with preferential access to nearly two-thirds of global markets by GDP and trade volume. He also said these pacts will help Indian goods, services, agricultural and fisheries products, and labour-intensive sectors reach new markets, integrate into global value chains and enhance talent mobility. He added that talks with Chile are wrapping up soon, and negotiations with Canada are about to kick off. 

Outlook for the coming week

Indian markets ended the passing week in red dragged down by heavy losses in IT stocks amid concerns over artificial intelligence-led disruption and renewed trade-related uncertainties.

The coming week mark the start of new month and it is likely to be a data heavy week. Traders will be eyeing HSBC Manufacturing PMI and Industrial Production data which are slated to be released on March 02. HSBC Composite PMI Final data is going to be out on March 04. Bank Loan Growth, Deposit Growth and Foreign Exchange Reserves will be released on March 06. Additionally, auto companies would grab some attention, as they will announce their monthly sales figures.

On the global front, investors will be eyeing economic data from United States, starting with S&P Global Manufacturing PMI Final and ISM Manufacturing PMI on March 02, Redbook YoY on March 03, S&P Global Composite PMI Final, S&P Global Services PMI Final and ISM Services PMI on March 04, Export Prices, Import Prices and Initial Jobless Claims on March 05, Baker Hughes Oil Rig Count and Fed Balance Sheet on March 06.

Top Gainers 

  • NTPC up by 5.15% was the top gainer on Nifty for the week - NTPC, in consortium with Maharashtra State Power Generation Company, completed the acquisition of Sinnar Thermal Power (STPL). STPL owns a coal based thermal power plant of 5X270 MW (1350MW) capacity at Sinnar, Nashik, Maharashtra. With this acquisition, the total installed capacity of NTPC group stands at 88,132 MW and commercial capacity at 87,052 MW.
  • Coal India up by 3.48% was another top gainer on Nifty for the week - Coal India traded higher amid pick up in power demand since January. Investors were optimistic that upcoming summer months will drive this power demand further. Meanwhile, the company said three-layer buffer across the supply chain ensures comfortable domestic availability and dispels concerns of shortages. 

Top Losers 

  • Eternal by 9.37% was the top loser of the week on Nifty - Eternal faced selling pressure as around 9.7 crore shares representing around 1% of total shareholding changed hands in a block deal worth around Rs 2,403 crore. Meanwhile, the company’s co-founder Deepinder Goyal had stepped down CEO of the company and serves as the Vice Chairman of the company.
  • Tech Mahindra down by 8.21% was another top loser of the week on Nifty - Tech Mahindra, along with other IT companies, came under pressure amid broad-based global selling in technology stocks. The investors were worried about impact of latest AI tools on the current business models of IT companies.

Technical viewpoints

During the week, CNX Nifty touched the highest level of 25,771.45 on February 23 and lowest level of 25,141.30 on February 27. On the last trading day, the Nifty closed at 25,178.65 with weekly loss of 392.60 points or 1.54 percent. For the coming week, 24,956.15 followed by 24,733.65 are likely to be good support levels for the Nifty, while the index may face resistance at 25,586.30 and further at 25,993.95 levels.

US Market

The U.S. markets traded in red during the week amid uncertainty over U.S. tariff policy. The U.S. Supreme Court's decision to block a pillar of U.S. trade policy has caused yet more uncertainty for trade partners and companies.

Some of the major developments during the week are:

U.S. weekly jobless claims rise less than expected in week ended February 21: Initial jobless claims rose to 212,000, an increase of 4,000 from the previous week's revised level of 208,000. Street had expected jobless claims to climb to 215,000.

Consumer confidence in U.S. improves in February: The Conference Board said its consumer confidence index rose to 91.2 in February from an upwardly revised 89.0 in January. Street had expected the index to jump to 88.0.

Seven-year note auction attracts slightly below average demand: The Treasury Department revealed this month's auction of $44 billion worth of seven-year notes attracted slightly below average demand.

U.S. crude oil inventories rebound sharply: Crude oil inventories spiked by 16.0 million barrels in week ended February 20 after tumbling by 9.0 million barrels in the previous week.

U.S. factory orders pull back in line with estimates in December: Factory orders slid by 0.7 percent in December after surging by 2.7 percent in November. The decrease matched street estimates.

European Market

European markets remained firm during the passing week despite uncertainty over US trade policy and geopolitical risks. Investors monitored the latest AI headlines and kept a close eye on Middle East tensions.

Some of the major developments during the week are:

Italy consumer confidence improves: The survey data from the statistical office Istat showed that consumer sentiment rose to 97.4 in February from 96.8 in the previous month. The expected score was 97.2.

German economy expands on domestic demand in the fourth quarter: Gross domestic product rose 0.3 percent after stagnating in the third quarter. The rate aligned with the preliminary estimate published on January 30.

Eurozone inflation slows as estimated: The final data from Eurostat showed that the harmonized index of consumer prices rose 1.7 percent on a yearly basis in January, in line with estimate released on February 4. 

Italy inflation eases as estimated: Consumer price inflation slowed to 1.0 percent in January from 1.2 percent in December. The statistical office confirmed the preliminary estimate published on February 4. 

Eurozone economic sentiment deteriorates: The survey data from the European Commission showed that the economic sentiment index fell unexpectedly to 98.3 in February from 99.3 in the prior month.

Asian Market

Asian markets traded mixed during the passing week as Nvidia's strong earnings and guidance failed to dispel investor fears over the durability of an AI boom.

Some of the major developments during the week are:

Japan industrial output climbs in January: Industrial production in Japan was up a seasonally adjusted 2.2 percent on month in January. That was well shy of forecasts for an increase of 5.5 percent following the 0.1 percent contraction in December.

Japan producer prices hold steady in January: Producer prices in Japan were up 2.6 percent on year in January. That was in line with expectations and unchanged from the December reading.

Japan retail sales jump in January: The value of retail sales spiked 1.8 percent on year in January- coming in at 12.954 trillion yen. That beat expectations for an increase of 0.1 percent following the 0.9 percent decline in December.  

Bank of Korea holds rates steady: The Bank of Korea held its policy interest rate steady at 2.5 percent for the sixth consecutive meeting in February 2026, continuing its extended pause in the easing cycle in line with market expectations.

China keeps loan prime rates unchanged: The People's Bank of China maintained its one-year loan prime rate at 3.0 percent, as widely expected. Similarly, the five-year LPR, the benchmark for mortgage rates, was retained at 3.50 percent.
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