Indian equities ended the week under pressure, extending their longest losing streak in six years, as global factors like crude oil prices, US bond yields, and foreign selling continued to weigh on sentiment, despite some late-week relief from oil price easing.
Indian shares ended the week under pressure as the Nifty 50 extended its losing run to seven straight weeks, the longest such streak in six years, after crude oil, US bond yields and persistent foreign selling combined to keep sentiment fragile. According to ETBFSI, the benchmark slipped about 0.88% over the week, although late buying helped trim some of the damage as oil prices eased and investors picked up beaten-down stocks.
The broader tone was still cautious. Business Standard reported that the Nifty closed at 23,140.50, down 205.90 points for the week, while Livemint said the index posted its steepest weekly fall in six years. Both reports pointed to the same forces behind the slide: firm crude prices, rising Treasury yields, geopolitical tension and heavier outflows from foreign investors.
Foreign portfolio investors remained the main source of pressure on domestic equities. ETBFSI said overseas funds had pulled out roughly Rs 18,531 crore from Indian shares so far in September through September 25, even as domestic institutions bought around Rs 52,617 crore and helped cushion the decline. Outlook Business separately reported that FPIs had withdrawn more than Rs 10,000 crore from equities this month, underscoring how quickly global risk aversion has shifted the flow picture after several months of strong buying.
Market watchers said crude will continue to matter because it affects inflation, company margins and the broader macro outlook. Vinod Nair of Geojit Investments told ETBFSI that even though oil ended the week lower, volatility in the market kept inflation worries alive, while India’s stronger-than-expected flash purchasing managers’ index for September offered some reassurance about underlying growth. Hariselvan Radhakrishnan of HST Wealth said Brent crude near $105 to $106 a barrel was still too high to give the economy meaningful relief, while any progress in US-Iran talks could reduce the geopolitical premium built into prices.
Attention now turns to the Federal Reserve, incoming US data and domestic activity numbers, all of which could shape the next move in risk assets. ETBFSI reported that investors will watch labor-market readings, inflation figures, manufacturing data and comments from Fed officials, while Indian industrial production data will be checked for signs that growth is holding up despite higher energy costs and tighter financial conditions. Radhakrishnan said stronger US numbers could keep yields and the dollar elevated, while softer readings might ease pressure on emerging markets.
Technically, the Nifty remains on shaky ground. ETBFSI said 23,000 is the key immediate support level, with 23,200 acting as near-term resistance and 23,300 needing to be reclaimed decisively before a more durable recovery can take shape. Analysts quoted by the outlet said the index is oversold after seven weeks of declines, but a lasting rebound will probably require a steadier oil market, lower bond yields and a slowdown in foreign selling.
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