Markets – Indian equities extend weekly losses amid global uncertainties
Markets – Indian benchmark indices ended the week on a negative note, marking their fourth straight weekly decline as global uncertainties and rising geopolitical tensions in West Asia continued to weigh on investor sentiment.
The Nifty slipped marginally by 0.16 percent over the week, although it managed to recover on the final trading session, gaining 0.49 percent to close at 23,114. Meanwhile, the Sensex rose 324 points, or 0.44 percent, on the last day to settle at 74,532, but still recorded a slight weekly decline of 0.04 percent.
Early optimism fades amid external concerns
Trading began on a relatively steady footing, with both indices showing limited movement at the start of the week. However, buying interest soon picked up, particularly in metal stocks, which provided temporary support to the market. Despite this, the overall sentiment remained fragile due to external pressures.
A major concern for investors has been the sustained rise in crude oil prices, which have stayed above the $100 per barrel mark. Higher oil prices are likely to increase inflationary pressures and widen India’s trade deficit, creating additional challenges for the economy.
Sectoral trends show mixed performance
Among sectoral indices, information technology and public sector banking stocks emerged as notable gainers during the week. Metal stocks also attracted strong investor interest, with the Nifty Metal index advancing by more than 2 percent. This rise was largely supported by positive brokerage outlooks and expectations of improved demand conditions.
On the other hand, broader market indices displayed mixed trends. The Nifty Midcap100 index recorded a marginal gain of 0.06 percent, indicating some resilience in mid-sized companies. In contrast, the Nifty Smallcap100 index declined by 1.11 percent, reflecting weakness in smaller stocks.
Rupee weakness adds to market pressure
The Indian rupee came under significant pressure during the week, falling past the 93 mark to hit a record low of 93.49 against the US dollar. This depreciation was driven by strong demand for the dollar, continued foreign institutional investor outflows, and overall global currency volatility.
Persistent selling by foreign investors has been another key factor influencing market direction. Over the past several sessions, foreign institutional investors have pulled out substantial funds, adding to the downward pressure on equities.
Analysts highlight cautious near-term outlook
Market experts remain cautious about the near-term outlook. Elevated oil prices and ongoing geopolitical tensions are expected to keep volatility high. Additionally, sustained outflows from foreign investors continue to dampen overall market sentiment.
Technical analysts point out that the Nifty faces immediate resistance around the 23,850 level, with further hurdles at 24,000 and 24,150. On the downside, key support levels are seen at 22,950 and 22,700.
The index has already corrected by nearly 13 percent from its record high, indicating that the broader market is undergoing a significant consolidation phase.
Bank Nifty levels to watch
For the banking index, the immediate support zone is placed between 53,000 and 52,000. On the higher side, resistance is expected in the range of 54,000 to 55,000. Market participants are closely monitoring these levels for signs of direction in the coming sessions.
Overall, while select sectors continue to show strength, the broader market remains under pressure due to global headwinds and domestic concerns. Investors are likely to remain cautious until there is greater clarity on geopolitical developments and macroeconomic factors.