Mumbai: Indian equity markets extended their losing streak to a fifth consecutive week as surging crude oil prices, rising US Treasury yields and foreign investor selling kept Dalal Street under pressure.
The Nifty 50 declined 2.09% during the week to finish at 23,398, while the Sensex lost 2.27% to settle at 74,781.76.
Oil Prices Become Biggest Headwind
Crude oil emerged as a major concern after escalating tensions around the Strait of Hormuz and threats to shipments in the Red Sea raised supply worries.
WTI crude jumped more than 9.5% during the week to cross $104 per barrel, while Brent crude advanced over 8.5%.
For India, expensive oil could increase inflationary pressure, push up corporate input costs and weigh on margins.
Global Rates Keep Investors Cautious
Concerns over global interest rates added to market nervousness. Firm US inflation and rising Treasury yields, with the 10-year yield nearing 5%, strengthened expectations that interest rates could remain elevated for longer.
Selling was widespread across sectors. Nifty Realty plunged 6.54% during the week, making it the biggest sectoral loser, while Nifty IT dropped around 5.78%.
The broader market also weakened, with the Nifty Midcap 100 falling 1.40% and the Nifty Smallcap 100 declining 0.94%.
FIIs Continue Selling
Foreign institutional investors remained sellers, offloading Indian equities worth ₹1,795.19 crore during the week.
Domestic institutional investors provided some support, making net purchases worth ₹6,419.46 crore.
For the Nifty 50, the 23,300 level is seen as immediate support, while resistance is placed around 23,500-23,600.
Market participants expect volatility to remain elevated next week as investors track Middle East developments, crude oil prices and changing expectations around US monetary policy.
The newly introduced closing auction session and expiry-day volatility could also remain on traders' radar.
