Indian stock markets concluded the week with a decline as benchmark indices fell due to global uncertainty and increasing geopolitical tensions. Investors adopted a cautious approach amidst volatility in global markets and uncertainties surrounding US-Iran talks, despite India’s robust GDP growth data. Both the Sensex and the Nifty witnessed a decrease of about 1.5% during the week, with broader markets like the Nifty Midcap 100 and Smallcap 100 indices also experiencing over a 1% drop.
On Friday, the Sensex dropped by 961.42 points, or 1.17%, closing at 81,287.19, while the Nifty slipped below the 25,200 mark, declining by 317.90 points or 1.25% to settle at 25,178.65. Most sectors faced selling pressure, except for IT and media stocks that managed to close in positive territory. The market weakness was primarily driven by negative global cues and ongoing geopolitical concerns, leading to selective investor participation.
Sector-wise, auto, banking, FMCG, metal, and realty stocks witnessed losses ranging from 1 to 2%, whereas IT, media, and consumer durable stocks displayed resilience by closing higher. Market experts observed that the Nifty breaking below its recent trading range signals a corrective trend in the near future. An analyst mentioned that the immediate resistance level is expected at 25,400, with anticipated high volatility due to uncertain global developments.
The Bank Nifty also experienced profit booking and formed a bearish pattern, with immediate support identified around the 60,000–60,200 zone, according to experts. Analysts predict the index to trade within a range of 60,000 to 61,750 in the short term, awaiting a decisive breakout to determine the next directional move. Siddhartha Khemka, Head of Research (Wealth Management) at Motilal Oswal Financial Services Limited, suggested that Indian equities may move sideways with a cautious bias in upcoming sessions.
Khemka highlighted that while domestic growth trends and sectoral strength offer some support, institutional flows and global macro developments will be crucial in shaping the market’s direction. Investor sentiment has been affected by inconclusive talks between the United States and Iran regarding Tehran’s nuclear program. Despite plans for further discussions next week, uncertainty surrounding the US’s future actions and their impact on energy markets and regional stability have kept markets on edge.
