Nifty IT Index Enters Bear Territory

Highlights 
• Oil India shares rise 4% after the Oilfields Bill receives approval in Lok Sabha.
• MTNL soars 16% as asset monetisation fetches ₹21.35 billion.
• Tata Motors falls 2% amid reports that Jaguar Land Rover has scrapped plans for an India EV factory.
• HDFC AMC extends losses, dropping up to 3%, following the release of February mutual fund data.
• Indian refiners shift to Latin America and Africa to replace Russian oil in February.

Benchmark equity indices closed in the red today as persistent global uncertainties overshadowed optimism stemming from softer CPI inflation prints in India and the US.

A sharp decline in IT stocks reflected broader market concerns about a potential slowdown in global demand for tech services.

 SECTORAL PERFORMANCE 
The Nifty IT index continued its downward trajectory, declining another 1% today. The index has officially entered bear market territory, plunging over 21% from its peak. In the previous session, it had slipped nearly 3%.

The Nifty Media and Nifty Realty indices were the worst performers, both dropping nearly 2%, followed by Nifty Auto, which ended over 1% lower.

Top Gainers	% Change	Top Losers	% Change
NIFTY BANK	0.01%	NIFTY REALTY	-1.83%
		NIFTY MEDIA	-1.50%
		NIFTY AUTO	-1.10%
		NIFTY METAL	-0.87%
		NIFTY CONSUMER DURABLES	-0.65%

Yields on 10-year government bonds edged slightly higher after being excluded from the RBI’s open market debt purchase next week. However, most bonds settled flat as traders remained on the sidelines ahead of the long weekend.

On Wednesday, domestic bond yields dipped slightly after lower headline retail inflation boosted expectations of an RBI rate cut in April.

Tenure	Today	Previous
10-year Gilt	6.70%	6.68%
5-year gilt	6.61%	6.60%
5-year OIS	5.97%	5.97%

The Indian rupee appreciated by 20 paise against the US dollar, supported by a decline in domestic inflation and a rise in industrial production, which boosted investor confidence.

Likely $1 billion inflows from an FMCG company stake sale also provided support to the local currency.
Trade activity was briefly disrupted early in the session due to a technical glitch on Refinitiv’s FX platform, which was later resolved

Unit	Today	Previous
Dollar/Rupee	87.00	87.19
Dollar Index	103.72	103.58
1-year Dollar/rupee premium (%)	2.14%	2.15%

OUTLOOK
Indian equities are expected to remain under pressure as investors grow cautious over potential tariffs on Indian goods by the Trump administration and their broader economic impact. A negative bias could persist for some time.

Markets will remain closed on Friday for the Holi festival.

For the rupee, a close below 87.00 would be a positive technical signal, though global uncertainties could keep the US dollar well-bid. The expected trading range for Monday is between 86.80 and 87.40, as investors await India’s Trade and WPI Inflation data next week.

Key Events & Data Due Next Week 

Economic Data:
- India WPI and trade data 
- US retail sales data 
- Eurozone February CPI data
- US  weekly initial jobless claims data

Corporate Actions:
- NMDC board to consider dividend
- Indian Railway Finance Corporation board to consider dividend
- Five-Star Business Finance board to discuss fundraising plans
- Indian Renewable Energy Development Agency board to discuss fundraising plans

Other Key Events:
- Bank of Japan policy meeting outcome - February 19
- US FOMC meeting outcome - February 19