Indian benchmark equity indices closed lower on Friday due to late-session selling pressure, influenced by the rupee’s weakness against the US dollar and a significant increase in crude oil prices. The Nifty ended 0.19% down at 23,643.50, while the Sensex dropped 0.21% to settle at 75,237.99.
Experts analyzing the Nifty technical outlook emphasized the need for a sustained breakout above current levels to strengthen bullish momentum and boost market sentiment towards the 23,900–24,000 range. They highlighted the crucial support level at 23,500-23,400, warning that a breach could push the index lower to the 23,300–23,200 support area.
Market sentiment turned cautious as the domestic currency hit a fresh low against the US dollar, raising concerns about escalating import costs and inflationary pressures. Additionally, the surge in global crude oil prices negatively impacted investor sentiment, particularly affecting energy-sensitive sectors.
The Nifty index saw Hindalco Industries, Eternal, and UltraTech Cement among the top laggards. Broader markets also experienced selling pressure, with the Nifty MidCap index down by 0.45% and the Nifty SmallCap index by 0.61%. Sectoral performance was weak, with the Nifty Metal, Nifty Realty, and Nifty Oil and Gas indices being the most affected segments.
Despite the overall market decline, buying interest in technology and media stocks led to positive closures for the Nifty IT and Nifty Media indices. Meanwhile, global oil prices surged, with Brent crude’s May futures climbing 2.9% to $108.8 per barrel, raising concerns about increased fuel costs and their potential impact on inflation and corporate margins.
The Indian rupee hit a fresh record low of 96.14 before settling at 95.97, driven by a widening trade deficit beyond market expectations and a sudden short squeeze post breaching 96. Analysts noted technical support at 95.45 for spot USDINR, with resistance levels at 96.20 and 96.85.
