Domestic equity markets experienced a significant downturn, with benchmark indices dropping over 2% each due to escalating crude oil prices and ongoing geopolitical unrest in West Asia. The Nifty fell by 2.2% or 532 points to close at 23,643.5, while the Sensex decreased by 2.7% or over 2,000 points to finish at 75,238.
During the week, broader markets faced substantial pressure, with the mid-cap index declining over 2% and the small-cap index losing nearly 4%. Realty stocks were the worst hit, as the BSE Realty index plummeted by almost 8%.
Sector-wise, IT stocks also faced downward pressure, with the BSE IT index falling by 5.7%, followed by declines in auto, capital goods, and consumer durable shares. Banking and PSU stocks were not spared either, as the BSE Bankex and BSE PSU indices both saw a 3% decline.
On a positive note, some defensive sectors performed well, with the BSE Metal index gaining 1.5% and healthcare stocks rising by 1.4%.
Among the top losers from the 30-scrip basket were Titan Company, which saw a 7.6% decline, followed by Reliance Industries, Tech Mahindra, and Mahindra & Mahindra. Market experts highlighted that investor sentiment remained cautious due to unresolved tensions in West Asia, impacting crude oil prices, inflation, and the rupee.
They also pointed out that elevated crude prices, increasing global bond yields, and the strong US dollar were putting pressure on emerging markets, resulting in sporadic foreign fund outflows and currency depreciation. Analysts expressed concerns over higher wholesale inflation, fuel price hikes, and rising bond yields affecting macroeconomic stability and future monetary policies.
Global cues remained negative as tensions in West Asia persisted without any resolution. Brent crude oil prices stayed high in the range of $105-110 per barrel due to worries about disruptions in the Strait of Hormuz.
Despite the market correction, domestic institutional investors continued to provide support, backed by robust retail participation. Furthermore, SIP inflows in April totaled Rs 31,115 crore, helping offset continuous FII selling.
