Indian Markets Fall for 5th Week on Geopolitical Tensions, Oil Surge

Nifty dipped 1.28 per cent during the week and declined 2.09 per cent on the last trading day to settle at 22,819. At close, Sensex was down 1,690 points or 2.25 per cent, at 73,583. It declined 1.27 per cent during the week.

Both indices remained volatile and under pressure throughout the week, although they attempted intermittent recoveries during the week.

Bank Nifty underperformed the broader market, closing near 52,274, down 2.67 per cent on Friday. It posted a steep weekly decline of around 2.16 per cent.

The key overhang remained the ongoing geopolitical uncertainty surrounding the US-Iran conflict, keeping markets highly event-driven.

Concerns around global energy supply disruptions persisted, with Brent crude prices hovering in the $98-$115 range, continuing to exert pressure on inflation expectations and overall macro stability.

Sectorally, Nifty metal and PSU Banks emerged as the top losers on a weekly basis. Nifty IT and pharma were the only weekly gainers, rising 1.17 per cent and 0.11 per cent, respectively.

Broader indices showed performed in line with the benchmark indices during the week, as the Nifty Midcap100 lost 1.38 per cent, while Nifty Smallcap100 dipped 0.63 per cent.

The Indian rupee weakened further, breaching the 94-mark against the US dollar, reflecting stress from elevated crude prices, and persistent capital outflows.

Vinit Bolinjkar, Head of Research, Ventura predicted range-bound action in the markets and elevated VIX until global risk sentiment eases. "Robust domestic flows and any de-escalation in tensions should limit downside, favouring quality large-caps and domestic themes over high-beta plays," he said.

The Nifty 50 index is currently attempting to stabilise in the 22,850-22,750 zone, indicating initial signs of consolidation after the recent decline, market participants said. Immediate resistance is located at 23,000-23,100 zones, they said.

For Bank Nifty, 52,000-51,800 zones are viewed as the immediate support levels followed by 51,500-51,000 levels, market participants said. On the upside, 3,000-53,600 acts as immediate resistance, they added.

Elevated oil prices are expected to keep pressure on markets, while any pullback could prompt short-covering and support a rebound, an analyst said.

On Friday, FIIs extended their aggressive selling in Indian equities, clocking net outflows of around Rs 25,000-30,000 crore during the week.

March month-to-date outflows surged past Rs 1.13 lakh crore, marking the sharpest single-month sell-off in FY26. DIIs countered strongly with over Rs 25,000 crore of net buying on a weekly basis.

- IANS