Indian stocks declined over the week as escalating oil prices and regional tensions dampened investor confidence, even as corporate earnings remained robust. The Nifty 50 and Sensex saw modest weekly declines amid geopolitical concerns overshadowing positive financial results.
Indian shares ended the week lower as higher crude prices and renewed Middle East tension curbed investor appetite, even as the latest earnings season broadly came in ahead of expectations. The Nifty 50 slipped 0.8% over the week to 24,366, while the BSE Sensex fell 0.6% to 78,009.25. The benchmark gauges were little changed on Friday, but the tone across the week was cautious as traders weighed geopolitical risks against still-solid corporate results.
Brent crude rose 4.6% during the week to about $87 a barrel, with market participants pointing to stalled progress in US-Iran peace efforts and the possibility of prolonged military pressure in the region. Reuters reported that Washington said it could maintain a naval blockade of Iran indefinitely and increase economic pressure as ceasefire talks faltered and regional tensions intensified. Pankaj Pandey, head of retail research at ICICI Securities, told Reuters that persistent macroeconomic concerns linked to higher crude prices were unlikely to produce a one-way market trend.
Broader market performance was mixed. Fifteen of the 16 major Indian sector groups fell over the week, with financials down 1% and metals leading the declines with a 1.9% drop. Mid-caps gained 0.5%, while small-caps lost 0.7%. Reliance Industries fell 1.9% after MSCI cut its weight in its flagship index during a periodic review. The weakness stood in contrast with parts of Asia, where South Korea’s Kospi surged 11.5% for the week on enthusiasm around artificial intelligence-related shares.
Among Friday’s notable movers, Tata Motors Passenger Vehicles dropped 4.3% after quarterly profit plunged roughly 80% on higher costs. LG Electronics India rose 9.6% after posting strong results and reaffirming its full-year revenue target. CNBC-TV18 reported that oil prices were also firm in early Asian trade on Friday, underscoring why energy costs remained a key pressure point for regional markets.
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