Mumbai: Indian stock market benchmarks ended lower for a seventh consecutive week as elevated crude oil prices, rising US bond yields and foreign investor selling weighed on sentiment.
The Nifty 50 lost 0.88 per cent over the week, while the BSE Sensex declined 0.54 per cent. Friday brought some relief after Thursday’s sharp sell-off: value buying lifted the Sensex 315.20 points to 73,895.74 and the Nifty 77.40 points to 23,140.50.
Oil Prices Remain A Concern
Brent crude traded above $105 a barrel for much of the week, while US benchmark WTI remained above $90. Supply concerns and geopolitical uncertainty kept energy prices elevated before both benchmarks eased towards the weekend.
High oil prices matter for India because they can raise the import bill, add to inflation concerns and increase costs for businesses. Oil-related demand for dollars can also put pressure on the rupee.
US Yields Add To The Pressure
The US 10-year Treasury yield moved above 5.10 per cent during the week. Higher bond yields can make emerging market equities less attractive to global investors and tighten financial conditions.
Analysts also pointed to stronger foreign institutional investor selling as a headwind for Indian shares. Together with oil prices, those outflows kept market participants focused on the rupee, although Reserve Bank of India intervention has helped limit sharp currency swings.
Levels To Watch
Thursday’s decline of more than 1.6 per cent in the benchmarks showed how quickly selling pressure could build. Friday’s rebound recovered only part of those losses and did not prevent another weekly fall.
Analysts identified 23,000 as immediate support for the Nifty and 23,200 as nearby resistance. The next move may depend on whether crude prices and US yields ease, and whether foreign selling slows.
