Indian stocks fell for a fifth consecutive week as surging crude oil prices, US Treasury yield hikes, and geopolitical tensions spooked investors, with broad-based declines across sectors and sustained foreign sell-off.
Indian shares slipped for a fifth straight week as a jump in crude oil prices, firmer US Treasury yields and persistent foreign selling unsettled investors. The Nifty 50 fell 2.09 per cent over the week to 23,398, while the Sensex lost 2.27 per cent and finished Friday down 120 points, or 0.16 per cent, at 74,781.
Market participants said the pressure came from a difficult global backdrop. A hotter US inflation tone and a rise in long-dated government bond yields pushed traders towards the idea that interest rates may stay elevated for longer, tightening financial conditions across markets. Reuters reported that the 10-year US Treasury yield moved closer to the 5 per cent level, adding to the cautious mood.
Oil was the biggest concern. According to market reports, attacks on shipping in the Strait of Hormuz and threats to tanker traffic in the Red Sea pushed West Texas Intermediate above $104 a barrel during the week, while Brent also climbed sharply. That matters for India because higher crude costs can widen the import bill, put pressure on the rupee, lift inflation expectations and squeeze company margins, especially for transport, manufacturing and consumer-linked businesses.
The selling was broad-based. Nifty Realty was the worst performing sector, tumbling 6.54 per cent for the week, while Nifty IT fell 5.78 per cent. Broader market gauges also weakened, with the Nifty Midcap 100 down 1.40 per cent and the Nifty Smallcap 100 off 0.94 per cent. Analysts also pointed to extra volatility from the newly introduced closing auction session, particularly on derivatives expiry days.
Foreign investors added to the weakness, with overseas funds net selling equities worth Rs 1,795.19 crore over the week, even as domestic institutions bought Rs 6,419.46 crore. Traders said Nifty now has immediate support near 23,300, while 23,500-23,600 remains a key resistance band. For Bank Nifty, support is seen around 56,200-56,000, with resistance near 56,700-56,800.
With Middle East tensions, crude prices and US rate expectations all still in focus, analysts expect Indian equities to remain sensitive to global headlines in the week ahead.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
