Indian equity benchmarks recorded a steep weekly fall of nearly 6 per cent amid escalating geopolitical tensions in West Asia and continued selling pressure in the markets.
The Nifty 50 declined 5.31 per cent during the week and slipped 2.06 per cent on the last trading day to close at 23,151. The BSE Sensex ended the session down 1,470 points or 1.93 per cent at 74,563. Over the week, the Sensex fell 5.52 per cent.
The surge in crude oil prices and mounting macroeconomic concerns for energy-importing economies such as India largely drove the sharp correction.
Among sectoral indices, the Nifty Auto Index plunged around 10–11 per cent during the week. This marked its worst weekly performance since March 2020. Every stock in the index witnessed strong selling pressure.
Analysts noted that shortages of LNG and LPG could raise the risk of production disruptions. Potential constraints in CNG availability may also alter consumer demand patterns. This could be particularly visible in urban markets where CNG-powered vehicles have gained traction.
Banking, metal and auto stocks were among the biggest drags on the final trading day of the week.
The sharp fall wiped out nearly Rs 9.5 lakh crore in investor wealth in a single session.
Broader indices also mirrored the weakness seen in benchmark indices. The Nifty Midcap100 declined 4.59 per cent during the week, while the Nifty Smallcap100 slipped 3.66 per cent.
Higher crude prices have raised concerns about inflation and currency pressure. The Indian Rupee weakened for the second consecutive week to settle at a fresh record low of 92.45 against the US Dollar.
Market analysts said immediate support for the Nifty is at 23,000, while resistance levels are seen at 23,300 and 23,500. For the Bank Nifty, 53,500 is the immediate support level, followed by 53,000.
On the upside, resistance levels stand at 54,000 and 54,300.
Meanwhile, the India VIX climbed above the 22 mark, indicating heightened fear among investors and expectations of increased market volatility in the near term.
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