Domestic equity benchmarks fell by almost 3% this week due to increased volatility and cautious sentiment. The Sensex closed at 78,918.90, down from the previous week’s 81,287.19, while the Nifty settled at 24,450.45 compared to 25,178.65.
Foreign institutional investors withdrew over Rs 23,000 crore from Indian markets during the week, contributing to the decline. However, strong domestic institutional flows helped offset some of the negative impact.
Geopolitical tensions and rising crude oil prices, nearing $86 per barrel, added to the market uncertainty. The BSE Midcap and BSE Smallcap indices both declined by about 3% week-on-week, underperforming the main indices.
Most sectors ended in the red, except for BSE Capital Goods, which saw a marginal increase. Sectors like BSE Realty, BSE Oil and Gas, and BSE Bankex experienced significant declines, reflecting the overall market trend.
Defence-related stocks stood out as top performers, gaining nearly 3% amidst the geopolitical tensions. The market witnessed a struggle between global risk aversion and local resilience throughout the week.
Despite challenges, domestic institutional investors remained strong, countering the FII outflows. The Nifty 50 approached its 200-day moving average but continued to be supported by robust domestic liquidity.
Market sentiment was impacted by escalating tensions in the Middle East, leading to increased risk aversion among investors. The India VIX surged over 11% from the previous close, indicating a heightened cautious approach in the market.
