Stock market outlook: Global cues, policy minutes and FII flows likely to guide indices

Mumbai, Feb 15 (SocialNews.XYZ) After a sharp fall in benchmark indices, investors will closely track global and domestic cues next week, including the US Federal Reserve minutes, RBI policy signals, IT sector trends, bullion prices and foreign investor activity, which are likely to decide the direction of the Indian stock market.

Indian stock markets ended sharply lower on Friday, (February 13), weighed down by weak global cues and rising worries over artificial intelligence and its possible impact on the global economy.

The BSE benchmark index fell 1,048 points, or 1.25 per cent, to close at 82,626.76. The broader NSE index also slipped 336 points, or 1.30 per cent, to settle at 25,471.10.

“On the weekly chart, immediate resistance is placed at 25,700. On the downside, strong support is seen at 25,300,” Choice Broking said while commenting on Nifty technical outlook.

It added that a decisive break below 25,300 could accelerate downside momentum, while a sustained move above 25,700 may revive bullish sentiment.

“Given the current setup, traders should maintain a range-bound strategy with strict stop-loss discipline,” it stated.

Going into the next week, investors will first focus on the minutes of the latest policy meeting of the US Federal Reserve, which are scheduled to be released on February 18.

Market participants are also awaiting US GDP data for the October–December quarter. Back home, the minutes of the recent monetary policy meeting of the Reserve Bank of India will be released on February 20.

The IT sector is likely to remain in focus after witnessing heavy selling pressure this week. The Nifty IT index declined nearly 8 per cent during the week, making it the worst-performing sector.

Heavyweights such as Tata Consultancy Services, Infosys and Wipro came under significant pressure.

Investor concerns have increased that generative and agentic artificial intelligence technologies could reduce demand for traditional outsourcing services, which may affect future earnings visibility for IT companies.

Meanwhile, global commodity trends will also be watched. Gold and silver prices began the week in a consolidation phase after a sharp sell-off earlier that forced leveraged investors to exit long positions.

Foreign institutional investor activity will also play a crucial role. So far in February, FIIs have been net buyers on most trading sessions, supported by improved sentiment after the India–US trade agreement.

Source: IANS