Stock Markets Remain Under Pressure As West Asia Crisis Weighs On Sentiment

Indian benchmark indices ended the week on a weaker note, marking the fourth consecutive weekly decline amid escalating tensions in West Asia and cautious investor sentiment.

The Nifty 50 slipped 0.16 per cent over the week but advanced 0.49 per cent on the final trading day to settle at 23,114. The BSE Sensex rose by 324 points, or 0.44 per cent, to close at 74,532 on the last session, though it registered a slight weekly decline of 0.04 per cent.

Markets opened the week on a flat note before witnessing some buying momentum, primarily driven by gains in metal stocks. However, broader sentiment remained subdued due to external uncertainties.

Persistently high crude oil prices, hovering above $100 per barrel, heightened concerns about inflationary pressures and the potential impact on India’s trade balance.

Among sectors, IT and PSU banking stocks delivered relatively strong performance. Metal stocks also attracted buying interest, with the Nifty Metal index rising more than 2 per cent on the back of favourable brokerage views and improved demand outlook.

Mixed Trends in Broader Indices

Broader market indices moved in different directions compared to the benchmarks. The Nifty Midcap100 recorded a marginal gain of 0.06 per cent, whereas the Nifty Smallcap100 declined by 1.11 per cent, reflecting uneven participation.

The Indian currency depreciated to a record low, crossing the 93 mark to reach 93.49 against the US dollar. The fall was driven by strong demand for the dollar, continued foreign institutional investor outflows, and global currency pressures.

Siddhartha Khemka from Motilal Oswal Financial Services noted that near-term market sentiment remains cautious due to elevated crude prices and ongoing geopolitical tensions. Persistent selling by foreign investors has further weighed on confidence.

Analysts identified 23,850 as the immediate resistance level for the Nifty, followed by 24,000 and 24,150. On the downside, 22,950 and 22,700 are seen as crucial support levels.

The index has fallen nearly 13 per cent from its record high, indicating a notable correction phase in the market.

Market participants expect the 53,000–52,000 range to act as immediate support for Bank Nifty, while they see the 54,000–55,000 range as the near-term resistance zone.

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