Stock Market Weekly Recap: Benchmarks tank 3%, NIFTY logs worst run since 1996

• NIFTY dropped 16% from its September peak, marking the worst losing streak in 29 years.
• Benchmark indices, NIFTY and SENSEX, dropped over 3% this week.
• Thangamayil Jewellery shares gained 14% this week.
• Tata Investment gained nearly 2% amid Tata Capital IPO buzz.

Stock markets saw a sharp correction this week with benchmark indices tanking over 3% due to across-the-board selling.

Deepening trade war worries and fears of a slowing US economy triggered massive selling in IT, auto and US market-focused shares. US President Donald Trump confirmed the implementation of a 25% tariff on imports from Canada and Mexico from next week, and an additional 10% tariff on Chinese goods. The move set off global equity rout engulfing Indian stock markets on Friday. A nearly 2% plunge in key stock indices wiped out more than USD 4 billion in investor wealth. Broader markets faced deeper slides with midcap and smallcap falling over 2%.

Relentless FII selling in the cash market has also weakened the market sentiment. FIIs took out ₹58,988 crore in February.

Benchmark indices tanked nearly 2% each on Monday to settle at eight-month lows. IT, metal and digital sector shares succumbed to profit taking after US President Donald Trump threatened to impose duties on more imported goods. SENSEX plunged by 857 points to close below 74,000 and NIFTY shed 242.55 points to end at 22,553.35, marking their fifth straight day of losses. Broader markets also fell up to 1%.

SENSEX managed to end its 5-day slide on Tuesday, closing higher by 147 after a restricted trade. NIFTY however slipped for the sixth day ending lower by 5.80 points at 22,547.55 ahead of the monthly expiry on Thursday.

Investors remained on the sidelines on the expiry day as markets resumed trading after a break on Wednesday. Key indices closed on a mixed note as financials and metal shares advanced while capital goods and auto shares declined. SENSEX advanced 10 points while NIFTY fell for the 7th day. Financial shares Shriram Finance, Bajaj Finserv and Bajaj Finance gained after the RBI lowered risk weights for bank finance to NBFCs and microfinance loans.

On Friday, SENSEX and NIFTY plunged nearly 2% as shares of IT, auto and FMCG succumbed to heavy selling. NIFTY tanked 420.35 points or 1.86 per cent to settle the week at 22,124.70 while SENSEX dropped 1,414.33 points or 1.90 per cent to settle at 73,198.1.

Top sectoral gainers & losers

[*No gainer among sectoral indices this week]

US markets

Commodities (MCX)

Currency gainers/losers (USD, GBP)

NIFTY’s worst run in nearly 3 decades

Benchmark NIFTY registered its worst monthly run in 29 years since 1996, extending losses to a 5th straight month on the last trading day of February. This was the second longest losing streak for the 50-share index since 1995. NIFTY had reported its longest-ever losing streak between September 1994 and April 1995. During this 8-month period, the benchmark index had plunged 31.4%. Amid the ongoing slowdown, NIFTY has declined 15.8% from the all-time high hit on September 27, 2024.

Tata Investment gains nearly 2%

Tata Investment shares jumped up to 10% on Tuesday after the Board of group firm Tata Capital approved a proposal to launch an IPO for its listing on bourses. Tata Investment holds a 2% stake in Tata Capital— an upper layer NBFC, which is required to get listed on the bourses as per RBI norms. Tata Investment closed the week higher by 2% despite heavy losses in the broader market.

Thangamayil hits 20% upper circuit, snaps 7-day losing run

Thangamayil Jewellery shares soared 20% to hit the upper circuit limit on Tuesday after it announced opening a new showroom in Chennai. The surge came after a seven-day slide that saw a 15% decline. The stock closed the week higher by nearly 14%.

UltraTech Cement’s dive into wires & cables segment causes $3.6-billion meltdown

UltraTech Cement shares closed lower by nearly 5% on Thursday following its announcement to enter the wires & cables segment by setting up a ₹1,800 crore plant at Bharuch in Gujarat. The development had a ripple effect in the wires and cables shares, which tanked up to 22%, wiping out investor wealth of around $3.6 billion. KEI Industries shares plunged 21.8%, RR Kabel by nearly 20% and Polycab by nearly 19%. Havells India dropped 7% and Finolex Cables by over 6%.

NBFC shares rise after RBI lowers risk weight for certain loans

Shares of NBFCs and microfinance institutions soared on Thursday after the RBI lowered risk weights for bank finance to non-banking finance companies and microfinance loans. CreditAccess Grameen surged around 11%, AU Small Finance Bank by over 6%, Shriram Finance by over 5%, Ujjivan Small Finance Bank by 3% and Bajaj Finance by over 2% on Thursday.