In our preceding weekly report, we had suggested that “it is time to buy,” and the markets appeared to have aligned with that view. The benchmark indices rebounded sharply, with the Nifty gaining 1.93% (428 points) and the Sensex by 1.54% (1,130 points) over the week.
During the week, both indices briefly slipped below the crucial 22,000/72,800 mark but staged a strong comeback, forming a reversal pattern on the daily and weekly charts — a positive sign for further upside.
Bank Nifty, however, saw a modest uptick of 153 points (+0.32%), while the Midcap Nifty stole the spotlight, surging by 1,275 points (+2.66%), signalling renewed interest in broader market opportunities.
Market Performance
Here's how the major indices fared:
Index | February 28, 2025 | March 07, 2025 | % Change |
Nifty | 22,124.7 | 22,552.5 | 1.93 |
Bank Nifty | 48,344.7 | 48,497.5 | 0.32 |
Midcap Nifty | 47,915.2 | 49,190.6 | 2.66 |
Sector Performance
All major sectoral indices closed in the green last week, with Defence and Metals emerging as standout performers.
Meanwhile, Nifty Bank and Financial Services saw limited upside despite the RBI announcing further liquidity measures.
It appears that the market is now primarily eyeing a rate cut as the next major trigger — though the timing of such a move remains uncertain.
Indices | Weekly Change (%) |
Nifty Metal | 8.61 |
Nifty Media | 7.36 |
Nifty Energy | 5.89 |
Nifty PSU Bank | 4.94 |
Nifty Select Midcap | 3.22 |
Nifty Pharma | 2.85 |
Nifty Auto | 2.49 |
Nifty FMCG | 2.37 |
Nifty Realty | 2.35 |
Nifty IT | 1.35 |
Nifty Financial Services | 0.47 |
Nifty Bank | 0.32 |
Weekly Top Gainers (Nifty 500)
Company | Weekly Gain (%) |
Triveni Turbine | 27.25 |
Sandur Manganese | 24.25 |
Anupama Rasayan | 23.07 |
Glenmark Life | 21.79 |
PTC Industries | 21.14 |
Weekly Top Losers (Nifty 500)
Company | Weekly Loss (%) |
Gensol Engineering | -40.29 |
Jindal World | -24.10 |
Five Star | -9.43 |
Hatsun Agro | -8.44 |
Kalyan Jewellers | -7.04 |
Stock-specific movements were largely influenced by company-specific developments. Gensol Engineering came under pressure after ICRA downgraded its credit rating, impacting sentiment.
On the positive side, Triveni Turbine saw a sharp 27% rally during the week, driven by strong investor interest and positive business momentum.
Liquidity Conditions
On the institutional front, FIIs continued their selling spree.
While DIIs stepped in as net buyers, absorbing more than what FIIs offloaded.
With sustained selling, FII ownership in Indian equities has now dropped to a decade low.
The ongoing FII outflows are being widely attributed to subdued returns and concerns around Indian taxation policies.
Given the current sentiment, we expect FII selling pressure to persist for some more time.
India Equity - Institutional Funds Flow (in Rs. crore)
Date | FII | DII |
March 03, 2025 | -4,788 | 8,791 |
March 04, 2025 | -3,406 | 4,851 |
March 05, 2025 | -2,895 | 3,371 |
March 06, 2025 | -2,377 | 1,618 |
March 07, 2025 | -2,305 | 2,320 |
Total | -15,771 | 20,591 |
Markets Rebound After Weeks of Selling
The Indian markets staged a sharp rebound last week after five consecutive months of decline, driven by strong DII buying and broad-based participation across large, mid, and small caps.
Signs of a potential market bottom emerged, with DIIs increasing their long positions to an all-time high — historically a positive indicator for multi-month recoveries.
Interestingly, the rebound came despite continued FII selling, indicating improving domestic sentiment.
Metal and Energy stocks led gains, supported by China stimulus expectations and falling oil prices. Small-cap stocks also witnessed sharp upward movement, hinting at renewed investor confidence.
Globally, US markets faced sharp declines amid policy uncertainties and tariff reversals by the Trump administration, adding to market volatility.
European markets remained mixed, while Chinese equities gained on hopes of a fresh stimulus package.
Despite global challenges, India's market resilience signals a potential turnaround phase.
Technical Perspective
The formation of a long bullish candle on the weekly charts suggests a positive bias, with 22,300/73,700 acting as key support for Nifty/Sensex.
Sustaining above these levels could push the indices towards 22,800/75,200, with an extended upside to 22,900/75,700. A breach below 22,300, however, may shift sentiment.
Bank Nifty holds a double-bottom support at 48,000. Staying above this level could drive gains towards 49,300-49,700, while a slip below 48,000 may weaken the uptrend.
With no major triggers ahead, the market is likely to stay range-bound, with opportunities emerging on dips.
Strategy - Staying Steady Amid Consolidation
Building on our view from last week, where we highlighted that extreme pessimism often creates the best buying opportunities, the market has indeed shown early signs of a recovery.
However, with no major triggers in sight, we now expect the market to trade range-bound in the near term.
The broader narrative remains unchanged — valuations are still below historical averages, and earnings growth is poised to improve, making the risk-reward equation attractive.
While the momentum may stay capped for now, this consolidation phase could very well be the final leg of accumulation before a more decisive uptrend unfolds.
Staying invested with a long-term perspective remains the prudent approach.
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