The week of 23–27 February 2026 was marked by heightened volatility, geopolitical uncertainty, and a clear shift toward risk-averse sentiment across global financial markets.
Investor confidence was influenced by multiple macro triggers, including ongoing US–Iran geopolitical tensions, uncertainty surrounding AI-driven tech valuations, global trade policy concerns, and fluctuations in bond yields. As the week progressed, equity markets lost momentum and capital rotated toward safer assets such as gold and silver.
Major global indices showed weakness. In India, both BSE Sensex and Nifty 50 closed lower for the week. In the United States, the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average also ended in negative territory.
Meanwhile, energy prices surged, precious metals strengthened, and Asian markets displayed mixed trends, reflecting a broader global “Risk-Off” environment.
Indian Market Performance
Weekly Index Summary
| Index | Weekly Trend | Approx. Change |
| Sensex | Declined | ~ -1.1% |
| Nifty 50 | Declined | ~ -1.2% |
Indian equities remained under pressure due to:
- Continued Foreign Institutional Investor (FII) selling
- Weak global cues
- Rising crude oil prices
- IT and banking sector weakness
Market capitalization declined by approximately ₹4–5 lakh crore during the week, reflecting cautious investor positioning.
United States Market Overview
| Index | Weekly Performance |
| S&P 500 | ~ -0.4% |
| Nasdaq Composite | ~ -1% |
| Dow Jones | ~ -1.3% |
The Nasdaq saw sharper weakness due to profit booking in AI and technology stocks. Inflation concerns and geopolitical tensions further weighed on sentiment.
China Market Update
China’s Shanghai Composite traded within a range of approximately 4,128–4,162 during the week.
Key observations:
- Mixed performance
- Ongoing concerns in the real estate sector
- Export growth moderation
- Anticipation of government stimulus measures
Losses remained relatively limited due to expectations of policy support.
Japan Market Update
Japan’s Nikkei 225 showed relative resilience and closed near the 58,850 level by the end of the week.
Factors influencing movement:
- Currency fluctuations (yen strength)
- Global tech sector weakness
- Mixed corporate earnings sentiment
Despite volatility, Japan displayed better stability compared to Western markets.
Commodities Update — Energy & Metals
Crude Oil
| Commodity | Approx. Price | Weekly Trend |
| Brent Crude | ~$72.48/barrel | Up |
| WTI Crude | ~$67.02/barrel | Up |
Oil prices climbed due to:
- Escalating US–Iran tensions
- Supply uncertainty
- Rising geopolitical risk premium
Analysts indicated Brent could approach $80 per barrel if tensions escalate further.
For oil-importing nations like India, sustained crude strength raises inflation and fiscal concerns.
Gold
| Metal | Approx. Price | Weekly Trend |
| Gold (COMEX) | ~$5,100+/oz (as reported regionally) | Strong |
Gold rallied on safe-haven demand amid geopolitical uncertainty. In India, MCX gold prices surged significantly, reflecting global momentum and currency factors.
Silver
| Metal | Approx. Price | Weekly Trend |
| Silver | ₹2,66,800+/kg (India reference) | Strong |
Silver benefited from both safe-haven flows and industrial demand expectations.
Copper
Copper showed mild upward movement during the week, supported by industrial demand signals, though gains remained limited due to concerns over Chinese economic momentum.
Geopolitical Impact
US–Iran Tensions
The absence of a breakthrough in nuclear negotiations added a geopolitical risk premium to oil markets. Energy price volatility intensified and safe-haven demand increased.
Regional Tensions in Pakistan
Heightened military and border-related tensions in the region contributed to overall investor caution. While no full-scale war escalation was confirmed, regional instability added to global risk aversion.
The Pakistan equity benchmark experienced volatility amid currency pressure and capital outflows.
Sector-Wise Trends (India)
| Sector | Trend | Key Drivers |
| Banking | Weak | FII selling |
| IT | Pressured | Global tech decline |
| Auto | Soft | Global demand concerns |
| Energy | Strong | Crude price support |
| Metals | Mixed to Strong | Commodity momentum |
| Precious Metals | Strong | Safe-haven demand |
IPO & Deal Activity
Mainboard IPO activity remained limited during the week, while SME listings saw moderate participation.
Large-scale M&A announcements were limited, though selective strategic investments occurred in technology and healthcare sectors.
Private equity and venture capital activity remained cautious amid macro uncertainty.
Weekly Conclusion
The week of 23–27 February 2026 can be summarized as a Geopolitical & Risk-Off Driven Market Phase.
Key Highlights:
✔ Indian and US markets declined
✔ China mixed; Japan relatively stable
✔ Crude oil prices rose
✔ Gold and silver strengthened
✔ Continued FII outflows in India
✔ Elevated geopolitical risk premium
Investment Outlook:
This was not a structural bear market shift but rather a corrective and defensive positioning phase.
Market direction next week will depend on:
- US macroeconomic data
- Oil price movement
- Geopolitical developments
- FII/DII flow trends
Investors are advised to prioritize risk management, portfolio balance, and sector rotation strategies in the current environment.
(Analysis based on available market data.)
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