Stock Market Outlook: Sensex, Nifty Fall As Crude Oil Hits Six-Month High

Indian equities extended their losses during a holiday-shortened week as rising crude oil prices and economic uncertainty weighed on investor sentiment.

Analysts warned that higher energy costs could pose further challenges for domestic markets.

The Nifty 50 declined around 2.4 per cent, while the Sensex lost approximately 2.2 per cent over the week. Both benchmark indices extended their losing streaks to four consecutive sessions.

Selling pressure spread across the broader market, with mid-cap and small-cap stocks falling sharply as investors reduced their exposure to riskier assets.

Valuation concerns and the unwinding of leveraged positions intensified the correction.

Analysts placed the Nifty’s immediate resistance at 22,800, followed by 23,000. For the Sensex, the 72,500–72,600 range emerged as an immediate support zone.

Sectoral performance remained mixed. Information technology stocks showed resilience and ended the week largely unchanged, supported by improving earnings visibility and renewed investor interest.

Consumer durables, metals and realty stocks faced heavier selling pressure. Concerns over rising input costs and shrinking profit margins weighed on these rate-sensitive sectors.

Brent crude oil prices climbed to a six-month high on Friday. Brent futures rose 3.1 per cent to settle at $116.72 per barrel, their highest level since April 29.

US West Texas Intermediate (WTI) crude gained 3.8 per cent to close at $103.27 per barrel.

Brent advanced 6.2 per cent during the week, while WTI gained 2 per cent.

Analysts warned that sustained crude price increases could raise energy and transportation costs, weaken consumption and intensify pressure on oil-sensitive sectors.

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