Weekly Market Wrap: Nifty Ends Lower as Tech Leads While Macro Pressures Mount

Indian benchmark equities extended their losing streak for a third consecutive week despite a late recovery session. The NIFTY 50 closed the preceding session at ₹24,175.65, posting a gain of +84.80 points or +0.35%, while the BSE Sensex settled at 77,264.51 up +330.92 points or +0.43%. Sectoral performance diverged significantly, as the NIFTY IT index emerged as the standout performer with a notable 3.51% surge to close at ₹31,281.70, counterbalancing persistent weakness in financial services and broader cyclical segments.

International sentiment remained fragile following a hawkish policy address by US Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium. Warsh emphasized that domestic inflationary pressures remain stubborn, prompting traders to reprice expectations for future monetary easing and pushing the US Dollar Index toward its fourth successive weekly gain. Meanwhile, elevated Brent crude oil valuations and shifting Treasury yields added layers of volatility across global risk assets.

Domestic institutional participation provided essential cushion against sustained foreign outflows during the holiday shortened trading week. Corporate earnings reactions remained selective, led by strong quarterly numbers from major banking heavyweights and aggressive capital expenditure announcements across infrastructure firms. Midcap and smallcap segments demonstrated resilience compared to headline indices, buoyed by steady retail SIP inflows and localized buying momentum.