Stock Market Weekly: Markets End Weak As West Asia Tensions Push Oil Above $107

India’s stock markets wrapped up the week in negative territory, pressured by rising geopolitical risks in West Asia, a steep increase in crude oil prices, and heavy losses in technology stocks.

Benchmark indices saw notable declines over the week. The BSE Sensex dropped 2.3 per cent, while the Nifty 50 slipped 1.9 per cent.

Despite the broader weakness, mid- and small-cap stocks showed relative resilience. The BSE Midcap Index and BSE Smallcap Index recorded only modest declines.

Investor activity reflected a divergence in flows. Foreign institutional investors remained sellers during the week, while domestic institutional investors provided support by continuing to buy equities, helping limit deeper losses.

The information technology sector faced the sharpest fall, dropping around 10 per cent.

Weak forward-looking commentary raised concerns about earnings growth in the coming financial year. Even though companies such as Infosys and Tata Consultancy Services reported results largely in line with expectations.

On the other hand, consumption-focused segments such as FMCG performed relatively well, supported by strong demand and healthy volume growth.

Banking and financial stocks also showed stability, with asset quality remaining steady despite worries linked to external developments.

Market participants largely remained cautious throughout the week.

Early recovery efforts lost momentum as tensions between the United States and Iran resurfaced. Disruptions in the Strait of Hormuz added to the uncertainty. Crude oil prices surged, rising over 15 per cent for the week and crossing $107 per barrel.

The geopolitical situation remained fluid. Reports of naval action and renewed restrictions on key shipping routes added to uncertainty, while statements from Donald Trump regarding an extended ceasefire further complicated the outlook.

By Friday’s close, the Sensex had fallen by 1,000 points to 76,664, while the Nifty ended 275 points lower at 23,897.95.

Looking ahead, investors will monitor key economic indicators, including India’s industrial production data and global manufacturing activity readings.

Policy moves by major central banks, including the Federal Reserve, Bank of England, and European Central Bank, are likely to shape sentiment. Their decisions could influence how markets move in the coming days.

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