Mumbai: Indian equity benchmarks ended lower for the seventh consecutive week as elevated crude oil prices, rising US Treasury yields and sustained foreign investor selling kept Dalal Street under pressure.
The Nifty declined 0.88 per cent during the week, while the Sensex lost 0.54 per cent.
Friday Brings Some Relief
The market managed a modest recovery on Friday after suffering sharp losses during the week.
The Nifty gained 0.34 per cent to close at 23,140, while the Sensex climbed 315 points, or 0.43 per cent, to settle at 73,895.
Value buying supported the rebound after benchmarks plunged more than 1.6 per cent on Thursday amid widespread selling pressure.
Crude Keeps Markets Nervous
Elevated crude oil remained a key concern. Brent stayed above $105 per barrel for most of the week, while WTI remained above $90 amid geopolitical uncertainty and worries over global supplies.
Oil prices, however, moderated towards the end of the week, providing some relief to market sentiment.
Persistently expensive crude could increase pressure on India’s import bill, inflation expectations, the rupee and input costs for companies.
Bond Yields Add Pressure
Global bond markets also remained challenging, with the US 10-year Treasury yield moving above 5.10 per cent during the week.
Higher yields tighten financial conditions globally and can make emerging-market equities relatively less attractive.
Foreign institutional investor selling also intensified, adding another significant headwind for domestic stocks.
Meanwhile, investors continued tracking geopolitical developments involving Iran, the United States and the strategically important Strait of Hormuz.
Nifty Eyes 23,000
Analysts see the 23,000 level as immediate support for the Nifty, while 23,200 remains the near-term resistance zone.
The rupee will also remain in focus. Oil-related dollar demand and continued foreign outflows could keep the currency under pressure, although RBI intervention has helped limit excessive volatility.
Investors will closely watch crude prices, global yields, foreign flows and geopolitical developments for the market’s next direction.
