The Indian equity benchmarks faced a significant weekly loss due to global inflation fears and rising crude oil prices. Nifty dropped by 2.33% over the week, closing at 23,767, while Sensex fell by 0.43% to 76,059, losing 2.68% for the week. Analysts attributed these losses to escalating West Asia conflict, Red Sea blockade, and expectations of a September rate hike.
Investor sentiment in India was impacted by uncertainties surrounding US tariffs, particularly affecting export-oriented sectors. Geopolitical tensions in the Middle East, weak Asian markets, and US trade tariff concerns further contributed to cautious investor sentiment. The week saw a decline in business activity and economic sentiment, with large-cap stocks facing selling pressure and underperforming the market.
Banking and real estate sectors experienced notable selling pressure, while FMCG and auto stocks stood out with strong quarterly earnings. Analysts noted that while earnings are expected to improve in the second half of FY27, this recovery hinges on stable crude prices and reduced tensions in West Asia. Broad market indices mirrored benchmark indices, with Nifty Midcap100 declining by 1.90% and Nifty Smallcap100 by 2.18% during the week.
Nifty’s immediate resistance levels are projected around 23,800-24,000, with support expected at 23,700–23,600. Similarly, Bank Nifty faces support at 56,000-56,100 and resistance at 56,800–56,900. Investors are closely monitoring crude oil price movements and global monetary policy changes, including the US Fed’s decisions, inflation data, GDP growth figures, and domestic IIP data.
