Mumbai: Indian equity markets extended their losses during the holiday-shortened week, as rising crude oil prices and persistent selling pressure weighed on investor sentiment.
The Nifty 50 declined around 2.4 per cent during the week, while the BSE Sensex fell approximately 2.2 per cent. Both benchmark indices extended their losing streak to four consecutive trading sessions.
The selling pressure also affected broader markets, with mid-cap and small-cap stocks witnessing sharper declines as investors reduced their exposure amid heightened uncertainty.
Market analysts said valuation concerns and the unwinding of leveraged positions contributed to the correction in mid- and small-cap stocks, while large-cap shares performed relatively better.
Crude Oil Prices Remain a Key Concern
Rising crude oil prices emerged as a major concern for domestic markets. Brent crude futures climbed 3.1 per cent on Friday to settle at 116.72 dollars per barrel, their highest level since April 29. US West Texas Intermediate (WTI) crude rose 3.8 per cent to close at 103.27 dollars per barrel.
For the week, Brent crude gained 6.2 per cent, while WTI advanced 2 per cent.
Analysts said a sustained rise in crude oil prices could increase energy and transportation costs, weigh on consumption and put pressure on sectors sensitive to oil prices. Higher input costs could also affect corporate margins.
IT Sector Shows Resilience
Among sectors, information technology (IT) stocks emerged as a relatively resilient segment, recovering from early selling to end the week largely unchanged. Analysts attributed the performance to improving earnings visibility and renewed investor interest.
In contrast, consumer durables, metals and real estate stocks faced heavier selling pressure amid concerns over input costs, margins and interest-rate sensitivity.
Markets Remain Under Pressure
The Nifty 50’s immediate resistance levels are placed around 22,800 and 23,000, according to analysts. For the Sensex, the 72,500–72,600 range is seen as an immediate support zone.
Market participants said the domestic macroeconomic outlook remains challenging, with crude oil prices likely to remain an important factor influencing investor sentiment and the performance of oil-sensitive sectors.
[DD news]