MUMBAI — Indian equity benchmarks ended lower this week as continued selling by foreign institutional investors and higher crude oil prices weighed on market sentiment.
The Nifty fell 0.73% for the week and declined 0.74% on the final trading day to close at 23,997. The Sensex ended the session down 582 points, or 0.75%, at 76,913, leaving the index lower by 0.97% for the week.
“Investor sentiment remained cautious as the double blockade in the Strait of Hormuz continued to weigh on global markets, without meaningful progress in negotiations,” an analyst said.
Oil prices rose to $126 per barrel for the first time in four years, intensifying inflation concerns and raising the risk of fuel price increases. The surge in crude prices also pressured the Indian rupee and renewed concerns about capital outflows and wider deficits, given India’s heavy reliance on oil imports.
Most sectoral indices ended in the red. Nifty Metal, PSU Bank, Realty and FMCG were among the major laggards, while Nifty IT and Pharma showed resilience.
Broader markets were mixed. The Nifty Midcap100 slipped 0.28% for the week, while the Nifty Smallcap100 gained 1.62%, outperforming the benchmark indices.
Despite volatility, early fourth-quarter FY26 corporate earnings helped investors maintain a constructive view in some areas. Defensive and demand-led sectors, including pharmaceuticals, healthcare, telecom and energy, outperformed even as the broader sell-off continued.
Analysts said geopolitical risks and inflation pressures are expected to keep the U.S. Federal Reserve hawkish through 2026, adding uncertainty to the interest rate outlook.
The Nifty 50 is expected to remain range-bound in the near term, likely moving between 23,500 and 24,500, analysts said.
Bank Nifty underperformed the broader market, closing at 54,863, down 2.56% for the week. It declined 0.98% on the final trading day.
Analysts expect Bank Nifty to continue consolidating in a broad range of 54,000 to 57,500, with stock-specific action likely during the quarterly earnings season for banking companies. (Source: IANS)
