Mumbai: Indian equity benchmarks ended lower for a sixth consecutive week as sustained foreign institutional investor selling and expectations of higher interest rates weighed on sentiment.
The Nifty declined 0.22% during the week, but gained 0.33% Friday to close at 23,346. The Sensex finished Friday 19 points, or 0.03%, lower at 74,294 and recorded a weekly loss of 0.65%.
Crude Oil Retreat Brings Relief
Domestic equities began the week on a weak note before recovering partially as crude oil prices retreated from recent highs. This eased inflation concerns and helped sovereign bond yields moderate.
However, policy signals from central banks continued to indicate a tightening bias. The possibility of interest rates remaining elevated for longer limited the recovery in Indian stocks.
FII Selling Pressures Markets
Persistent FII outflows also kept the rupee under pressure and prevented a stronger rebound in the Sensex and Nifty.
Mid-cap and small-cap shares outperformed large-cap stocks as investors shifted towards domestic businesses offering earnings visibility, strong order books and healthier balance sheets.
Healthcare And FMCG Gain
Healthcare and FMCG stocks attracted buying because of their defensive earnings and domestic demand exposure. Realty and metal shares were among Friday’s stronger performers.
Information technology stocks remained under pressure, with the Nifty IT index falling about 1%. Mid-cap and small-cap IT companies also declined amid concerns about global technology spending.
Consumer durables weakened as higher interest rates and pricing pressure clouded the outlook for discretionary demand.
Nifty Support And Resistance Levels
The 23,000–23,100 zone is expected to provide immediate support for the Nifty. Resistance is seen between 23,400 and 23,600, making this range important for the index’s next move.
Investors will closely track domestic credit growth and PMI data next week. US jobless claims and comments from Federal Reserve officials will guide expectations regarding interest rates and global liquidity.
