Nifty and Sensex ended the week on a weaker note as persistent foreign institutional investor (FII) selling and concerns over a below-normal monsoon forecast weighed on investor sentiment.
Fears of higher food inflation and uncertainty in global markets contributed to the cautious mood across Dalal Street.
The Nifty declined 0.72 per cent during the week and slipped 1.50 per cent on the final trading session to close at 23,547.75. The Sensex settled at 74,775, falling 1,092 points or 1.44 per cent on the day.
The benchmark index recorded a weekly decline of 0.85 per cent.
Large-cap stocks remained under pressure throughout the week. Broader markets displayed resilience, with mid-cap stocks briefly touching record levels.
Market experts noted that PSU banking stocks led gains, driven by mark-to-market treasury benefits from lower bond yields.
Automobile and metal counters also benefited from a sharp correction in crude oil prices.
At the same time, FMCG, healthcare, and consumer durable shares witnessed selling as investors reduced positions in defensive sectors.
Analysts also pointed to MSCI index rebalancing adjustments, which triggered substantial institutional selling during the final trading session.
Despite recent weakness, market participants observed that the broader macroeconomic backdrop appears more favourable than it was two weeks ago. They stressed that policy clarity, monsoon normalisation, and easing geopolitical tensions remain essential for stronger large-cap participation.
Crude oil prices recorded a steep weekly decline amid optimism surrounding a possible US-Iran diplomatic understanding.
The India Meteorological Department’s forecast of below-normal rainfall offset some of the positive impact.
The rupee strengthened modestly following the Reserve Bank of India’s commentary, indicating that the currency remains undervalued. FIIs withdrew approximately Rs 23,700 crore during the week.
The Nifty Midcap100 gained 0.54 per cent, while the Nifty Smallcap100 advanced 1.02 per cent.
Analysts expect the 24,000-24,100 range to act as a key resistance zone for Nifty, while 23,300-23,000 remains critical support.
Investors now await the RBI policy decision, GDP figures, PMI data, and IIP numbers for fresh market direction.
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