Indian equity markets concluded the week on a downward trend for the sixth consecutive time, influenced by rising geopolitical tensions in West Asia and significant currency fluctuations. Both major indices, Sensex and Nifty 50, wrapped up the shortened four-day trading week in negative territory. Sensex finished at 73,319.55, marking a 0.35% drop from the previous week, while Nifty 50 settled at 22,713.10, down by 0.46% week-on-week.
In the week’s final session, both benchmarks experienced a sharp decline in early trading, with the 50-scrip basket shedding over 500 points and Sensex dropping by more than 1,500 points. This decline followed US President Donald Trump’s warning of potential intense military actions against Iran in the next few weeks, without a clear indication of diplomatic solutions. However, the markets saw a partial recovery by the session’s end.
Notable losers among Nifty 50 constituents for the week included HDFC Life Insurance, Sun Pharma, Dr. Reddy’s Laboratories, NTPC, and Cipla. The BSE Midcap 150 index underperformed the benchmarks, declining by 0.6% week-on-week, while the BSE Smallcap 250 index defied the trend and rose by 0.8% over the same period.
In terms of sectors, realty, healthcare, and banking emerged as the top gainers for the week, with gains of around 3%, 2.7%, and 1%, respectively. Conversely, metal, power, and consumer durables sectors were the top losers, each witnessing a decline of more than 2%.
Market analysts anticipate continued volatility in the upcoming week, with investor sentiment closely linked to developments in the West Asia conflict. The ongoing West Asia conflict is expected to keep Indian equities on edge, with recent remarks from US President Donald Trump hinting at a more assertive approach, emphasizing the possibility of military action alongside diplomatic efforts.
Any signs of de-escalation in the West Asia conflict could lead to relief through lower crude prices and currency stabilization, while further escalation might prolong risk aversion and maintain pressure on foreign inflows, analysts noted. Brent crude prices have remained high, hovering around $107 per barrel.
Looking ahead, markets are set to resume trading after a three-day break and are poised to monitor key events such as the RBI monetary policy committee’s rate decision, the US Federal Open Market Committee (FOMC) meeting minutes scheduled for April 8, and the commencement of the Q4 FY26 earnings season. Additionally, stock exchanges will be closed on Good Friday.
