Weekly Market Roundup : Key Highlights Post Union Budget-2025

The Indian stock market wrapped up the week ending February 7, 2025, with mixed trends as investors balanced budget optimism, weak corporate earnings, and global uncertainties. Despite facing volatility in most sessions, Sensex and Nifty 50 managed to extend their gains for the second consecutive week.

The Union Budget 2025, with its focus on fiscal discipline and growth-oriented measures, kept investor sentiment cautiously optimistic. However, weak Q3 corporate results and foreign institutional investor (FII) outflows weighed on the markets.

Let’s dive deep into the key takeaways from this week’s market action.

Market Performance: Mild Gains Despite Volatility

Indian equities oscillated between gains and losses, reflecting market uncertainty. The Nifty50 and Sensex posted modest weekly gains, while broader markets showed mixed trends.

Major Indices Performance

📊 NSE Nifty50
🔹 Gained 0.22% (+51.55 points) → Closed at 23,559.95

📊 BSE Sensex
🔹 Added 0.46% (+359.6 points) → Settled at 77,860.19

📊 Broader Market Indices
🔹 Nifty Midcap 100: Slight decline
🔹 Nifty Smallcap 100: Up 0.6%
🔹 Bank Nifty: Surged over 1%, emerging as a key outperformer

Despite these gains, markets ended in the red on 4 out of 5 trading sessions, with only February 4 seeing a strong 1.6% rally.

Also Read :- https://ipofront.in/why-past-performance-isnt-everything-choosing-equity-mutual-funds/

Winners & Losers: Who Moved the Markets?

The week saw significant stock-specific action, with some counters witnessing strong gains, while others faced steep corrections.

Top Gainers (Nifty Stocks)

IndusInd Bank: +8% (Strong financials & sector momentum)
Bajaj Finance: +7% (Positive investor sentiment post-Q3 earnings)
Mahindra & Mahindra: +7% (Robust auto sector demand)
Maruti Suzuki: +6% (Strong vehicle sales & order book)
ITC Hotels: +6% (Improved revenue outlook)

Top Losers (Nifty Stocks)

Power Grid Corporation: -8% (Weak outlook, profit-booking)
L&T: -6% (Pressure on infra stocks)
Bharat Electronics: -5% (Lower-than-expected earnings)
Trent: -5% (Correction after a rally)
ONGC: -5% (Weak crude oil prices impacted sentiment)

Sectoral Breakdown: Who Led & Who Lagged?

Sectoral indices witnessed mixed movements, with some areas outperforming while others struggled.

Sectors That Gained
Pharma, Auto, and Metals led the gains, rising up to 3%.
Media and IT stocks also remained positive.

Sectors That Declined
FMCG index dropped 3%, making it the biggest loser.
PSU Bank stocks struggled, facing continued selling pressure.
Nifty PSE & Nifty Energy fell by 4%, reflecting weakness in public sector enterprises and energy stocks.

Also Read :- https://ipofront.in/upcoming-ipos-next-week-february-9-15-2025/

Technical Outlook: What’s Next for Nifty?

Support Level: 23,450 – If Nifty holds above this, the short-term trend remains positive.
Resistance Level: 23,700 – A breakout above this could push Nifty towards 24,050.

Market Volatility: The index remained choppy after the RBI monetary policy announcement, reflecting uncertainty.

Key Market Developments: RBI’s Surprise Rate Cut & Market Reaction

One of the biggest developments of the week was the RBI’s unexpected monetary policy shift.

RBI Governor Sanjay Malhotra announced a 25 basis point rate cut, reducing the repo rate from 6.5% to 6.25%.
This was the first rate reduction in 12 policy reviews, signalling a pro-growth stance from the central bank.

How Did Markets React?

On February 7, the Nifty dropped below 23,600, and the Sensex declined by 200 points, as investors remained cautious despite the rate cut.
Nifty Metal index gained over 2%, while PSU Bank, FMCG, Media, and Oil & Gas sectors each fell by 1%.
Nifty Midcap Index showed a slight increase, whereas the Nifty Smallcap Index dropped 0.3%.

Final Thoughts: What to Watch Next Week?

As markets move forward, investors will keep a close eye on key triggers that could shape future trends:

🔹 Global economic cues & geopolitical developments
🔹 Foreign Institutional Investor (FII) activity – will they continue selling?
🔹 Corporate earnings reports – especially from major blue-chip companies
🔹 Sector rotations & technical breakouts

The budget-fueled optimism has provided some support to markets, but volatility remains high. Will Nifty break above resistance levels, or will caution dominate again?

Stay tuned for more updates!