Indian stock markets recorded losses for the seventh week in a row amid sustained high crude oil prices and a surge in US bond yields.
Over the week, the Nifty index dropped 0.88 per cent but gained 0.34 per cent on the final trading day to close at 23,140 points. Meanwhile, the Sensex increased by 315 points or 0.43 per cent at the close to reach 73,895, though it fell 0.54 per cent over the entire week.
The markets faced heavy selling pressure in the middle of the week, with indices plunging more than 1.6 per cent on Thursday, before recovering modestly on Friday supported by value buying.
Brent crude prices remained above $105 per barrel for most of the week, while WTI crude traded above $90 per barrel amid ongoing geopolitical tensions and concerns over global oil supplies.
Oil prices eased towards the week's end, which helped improve global risk sentiment and reduced worries about the impact on India's import bill, inflation expectations, the rupee, and corporate costs.
Experts noted that the global bond market added to pressures, highlighted by the US 10-year Treasury yield climbing past 5.10 per cent during the week. Such elevated yields tighten global financial conditions and diminish the appeal of emerging market assets, they explained.
Foreign institutional investors increased their selling activity sharply compared to previous weeks, negatively affecting domestic equities.
the geopolitical arena, Iran submitted a new seven-day proposal to the US aiming to end the conflict and reopen the critical Strait of Hormuz, conditional on Washington lifting its naval blockade, waiving oil sanctions, and agreeing to a broader ceasefire.
Analysts identified the 23,000 level as immediate support for the Nifty, with resistance seen around 23,200 points.
Market watchers are closely following the rupee's movement, as ongoing dollar demand driven by oil imports and continued foreign institutional outflows may keep the currency under pressure. However, interventions by the Reserve Bank of India have helped to limit excessive volatility.
