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We hope you had a productive week. Here’s your detailed weekly market wrap to keep you informed and aligned with your financial goals.

Weekly Market Wrap | 01 - 06 Febraury 2026

Indian equity benchmarks ended the week on a mixed note, marked by elevated volatility and selective participation. While headline indices managed modest gains, underlying sentiment remained cautious, driven by sector rotation and stock-specific moves.

Key Events During the Week

Ongoing Reaction to Union Budget 2026

The Union Budget was presented just before this period (on Feb 1), including a hike in securities transaction tax (STT) on derivatives that triggered a historic volatility spike and sharp selling on Budget Day. This carried momentum into early Feb trading

Strong Recovery Mid-Week After Budget Weakness

After that sharp fall, markets staged a notable rebound mid-week, with benchmarks rallying strongly — indices jumped, and midcaps outperformed as sentiment improved.

RBI Monetary Policy Decision

The Reserve Bank of India (RBI) kept its key policy rate unchanged and maintained a neutral stance, which supported sentiment and helped markets close the week in the green.

IT Sector Slide — Worst Week in Months

Indian IT stocks collectively saw their worst weekly performance in over four months, driven by fears around AI disruption and sell-offs in tech names (e.g., TCS, Infosys). This pullback was a major sector move during Feb 2-6

Market Breadth & Currency Movement

The Indian rupee logged its best weekly performance in over three years, strengthening against the US dollar, which further supported broad market sentiment toward the end of the week.

What This Meant for Markets

Volatility dominated early week because markets were digesting the Union Budget reaction and tax changes. (After Budget Day’s sharp correction, volatility lingered.)
• Mid-week rally was driven by improved sentiment and global cues.
• Sector rotation emerged — strength in some cyclical stocks, weakness in IT/tech shares.
• RBI pause on rates helped stabilize investor confidence toward week-end.
• Commodities (like gold/silver) and risk assets showed mixed behavior, reflecting selective buying and profit-taking

Weekly Index Performance

Summary:
Major indices finished the week in positive territory, highlighting broad market recovery. Midcaps and financials outpaced the benchmark, signaling renewed investor confidence.

Top Gainers of the Week - Nifty 50

Summary:
Infrastructure, consumer-oriented retail, and diversified conglomerates saw strong bullish activity this week. Adani group stocks led gains, contributing materially to index strength.

Top Losers of the Week - Nifty 50

Summary:
IT and tech services experienced a notable sell-off, likely due to sector rotation as investors moved toward cyclical and infrastructure names. Defensive tech positions weakened collectively.

Top Gainers of the Week - Nifty 500

Summary:
Manufacturing, specialty chemicals, industrial consumables, and retail-linked segments were among the most bullish names. These outperformers may indicate investor preference for cyclical growth stories.

Top Losers of the Week - Nifty 500

Summary:
Defense, metals, specialized engineering, and mid-tier IT names experienced sharper declines, suggesting risk-off sentiment in certain cyclical and niche tech areas.

Weekly Market Takeaway

Markets showed resilience despite sectoral pressure, indicating measured positioning rather than panic selling. Near-term direction remains sensitive to global cues, while portfolio performance continues to be driven by stock selection and sector allocation rather than broad index moves.

Conclusion

We recommend staying aligned with your financial goals and maintaining diversification across sectors and market caps.

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