Mumbai, Sep 26: Indian equity markets ended another volatile week in the red, with the Sensex and Nifty extending their losing streak to seven consecutive weeks as elevated crude oil prices, rising global bond yields and continued foreign fund selling weighed on investor sentiment.
The benchmarks, however, recovered some ground on Friday after a sharp sell-off in the previous session. The Sensex gained 315.20 points, or 0.43 per cent, to close at 73,895.74, while the Nifty 50 rose 77.40 points, or 0.34 per cent, to 23,140.50. Despite the late-week recovery, the Sensex fell 0.53 per cent and the Nifty declined 0.88 per cent over the week.
The seven-week decline marks the longest weekly losing streak for the Nifty in six years, keeping investors focused on the impact of global macroeconomic pressures on Indian equities.
Crude remains a major market pressure point
High crude oil prices remained one of the biggest concerns for investors during the week. Brent crude stayed above the $100-a-barrel mark, keeping worries alive over inflation, India’s import bill and corporate cost pressures.
For an oil-importing economy such as India, sustained higher crude prices can influence inflation expectations, the current account and the rupee, while also affecting margins across several oil-sensitive industries.
Rising bond yields add to pressure
Global bond yields also emerged as a major market trigger. The US 10-year Treasury yield moved to around 5.11 per cent, its highest level since 2007, increasing the attractiveness of dollar-denominated fixed-income assets and adding pressure to emerging-market equities.
Higher yields can also raise financing costs and influence equity valuations as investors reassess the relative returns available across asset classes.
Foreign selling weighs on sentiment
Foreign portfolio outflows remained another source of pressure. Market reports noted that foreign investors had sold around Rs 18,531 crore of Indian equities through September 25, while domestic institutional investors provided support with purchases of about Rs 52,617 crore during the same period.
This divergence between foreign and domestic flows has helped cushion some of the selling pressure, although overall market sentiment has remained cautious.
Financials and IT remain under pressure
The weekly decline was broad-based, with several major sectors facing selling pressure. The Nifty Financial Services index fell about 1.6 per cent, while the Nifty IT index declined 2.4 per cent, marking their fourth consecutive weekly declines. The Nifty Midcap 100 and Smallcap 100 also ended lower for the week.
Thursday’s sharp sell-off had intensified concerns after the Sensex and Nifty dropped more than 1.6 per cent, with crude prices rising and US Treasury yields reaching multi-year highs.
Markets remain sensitive to global cues
Going into the next trading week, investors are likely to track movements in crude oil, global bond yields, foreign fund flows, currency markets and geopolitical developments.
The market’s recent performance shows how closely Indian equities are responding to external macroeconomic conditions. While Friday’s recovery provided some relief, the seventh consecutive weekly decline keeps attention focused on whether pressure from oil prices and global yields persists into the coming weeks.