Escalating tensions in the Middle East combined with massive FII outflows battered India’s key indices, resulting in a roughly 3 percent weekly drop. Sensex plummeted from 81,287.19 to 78,918.90, and Nifty from 25,178.65 to 24,450.45, erasing significant gains and rattling investors.
Foreign funds offloaded more than ₹23,000 crore, wary of rising Brent crude at $86/barrel triggered by regional conflicts. This global risk-off sentiment overshadowed domestic positives, though DIIs absorbed much of the selling pressure.
Broader markets mirrored the decline, with midcap and smallcap indices down 3 percent each. Sector heavyweights like realty (-4.9%), oil & gas (-4.8%), banks (-4.6%), autos (-3.9%), and consumer durables (-3.1%) bore the brunt.
Bright spots emerged in capital goods (+0.2%) and defense (+3%), where investors flocked for perceived safety amid international uncertainties.
Experts like Ventura’s research head Vineet Bolingkar describe it as a battle between external headwinds and internal fortitude. Domestic SIP flows and DII buying have kept the correction in check. Nifty’s touch at 200-DMA levels signals caution, but long-term outlook stays bullish with volatility index up 11 percent reflecting temporary jitters.