Indian shares ended the week lower amid rising crude oil prices and geopolitical uncertainties, despite resilient domestic earnings and sector-specific gains, highlighting external pressures on the market.
Indian shares ended the week lower as a jump in crude oil prices and a cloudier global backdrop outweighed signs of resilient domestic earnings. The Nifty slipped 0.83% over the week to 24,366, while the Sensex fell 0.62% to 78,009, breaking a two-week winning run, according to the reports.
Analysts said softer-than-expected US labour market data had briefly raised expectations that the Federal Reserve might stay cautious on rates, but that tone was quickly overshadowed by firmer oil prices and renewed concern over geopolitical risk. Moneycontrol and Business Standard both reported that the rebound in crude put inflation pressures back into focus.
Domestic fundamentals offered some offset. Better-than-expected corporate results, a steady rupee, easing in the 10-year bond yield and improving foreign institutional investor participation helped cushion the market, while 33 Nifty 50 constituents beat estimates, according to the lead report. That strength supported a stock-picking market even as broader indices stayed capped by external uncertainty.
Sector performance was mixed. Consumer durables and realty gained on hopes tied to demand and local growth, while state-run banks also held up on healthy asset quality and valuation support. Metals, automotives and fast-moving consumer goods came under pressure as investors booked profits and worried about higher input costs. Mid- and small-cap shares proved more resilient, with both the Nifty Midcap100 and Nifty Smallcap100 rising 0.50% for the week, underscoring the split between benchmark weakness and broader market strength.
Investors will now watch crude prices, Middle East developments, US retail sales, Federal Open Market Committee minutes and Chinese economic data for clues on the next move in global growth expectations and Federal Reserve policy.
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