Geopolitical storms in the Middle East combined with FII heavy selling to inflict a sharp 2.9% weekly loss on India’s flagship indices. The Sensex ended at 78,918.90, down from 81,287.19, and Nifty settled at 24,450.45 versus 25,178.65—a stark reminder of how global events can sway local markets.
FIIs withdrew over ₹23,000 crore, embracing a defensive stance as Brent crude neared $86 per barrel. Higher energy costs threaten India’s fiscal balance, sparking widespread caution. The fallout spared no segment: BSE Midcap and Smallcap indices dipped 3% each.
Sector performance painted a grim picture. Realty tanked 4.9%, followed by Oil & Gas at 4.8%, Bankex 4.6%, Auto 3.9%, and Consumer Durables 3.1%. In contrast, Capital Goods rose marginally by 0.2%, and Defence stocks surged nearly 3%, drawing flows from risk-off bets elsewhere.
Thankfully, DII buying provided a vital counterbalance, alongside retail SIP inflows that propped up valuations. ‘It’s a classic global risk-domestic strength dynamic,’ remarked Ventura Securities’ research head. This interplay blunted the edge of the downturn.
Market nerves frayed further, with India VIX leaping over 11% intra-week. Nifty’s proximity to the 200-day moving average at 24,450 signals a pivotal juncture. Analysts remain upbeat on the long game, citing resilient domestic participation amid external pressures. Upcoming data on oil and conflicts will dictate the rebound path.