The Indian equity benchmarks concluded the week with a 2.5% decline, extending losses over five sessions due to uncertainties surrounding US-India tariff discussions and rising geopolitical tensions. Sectors like autos, metals, and oil and gas saw profit-booking, while there was some selective buying in consumer durables, driven by hopes of a demand recovery. The Nifty fell by 2.45% for the week, closing at 25,638, while the Sensex dropped by 0.72% to 83,576, marking a 2.55% decline for the week.
Bank Nifty displayed a dark cloud cover candlestick pattern on the weekly chart, signaling selling pressure at higher levels as noted by analysts. The domestic markets remained cautious, particularly due to concerns about potential US trade actions related to Russia sanctions. Global uncertainties, including the Venezuela–US standoff, Russian oil import worries, China’s rare earth export restrictions, and ongoing FII outflows, further dampened market sentiment.
Throughout the week, broader indices mirrored the benchmark indices’ performance, with the Nifty Midcap100 sliding by 2.64% and the Nifty Smallcap100 declining by 3.08%. Investors are anticipating the upcoming Q3 FY26 IT earnings release scheduled for the following week. Additionally, market watchers are awaiting a court ruling on US President Donald Trump’s use of the International Emergency Economic Powers Act (IEEPA) to levy global tariffs, which could impact various sectors, especially those exposed to the US market.
Analysts anticipate continued volatility in the near term, particularly for companies and sectors with significant exposure to the US, such as metals and oil and gas. The market outlook suggests a range-bound trend with a mixed bias, balancing external risks and domestic fundamentals, according to analysts.
