Geopolitical tensions and global market jitters triggered a weekly decline of nearly 1.5% for India’s key indices, Sensex and Nifty, as investors pulled back amid rising caution. The week ended weakly on Friday, with benchmarks tumbling under pressure from international volatility, especially US-Iran negotiation uncertainties.
India’s latest GDP data showed resilience, yet it failed to lift spirits in a market overshadowed by external risks. Sensex closed at 81,287.19 after a 1.17% or 961.42-point drop, and Nifty settled at 25,178.65, down 1.25% or 317.90 points, slipping under 25,200.
Midcap and smallcap segments weren’t spared, with respective 100 indices dropping more than 1%. Heavy selling hit auto, banking, FMCG, metal, and realty sectors by 1-2%, while IT, media, and durables bucked the trend with gains.
Analysts attribute the downturn to adverse global signals and ongoing geopolitical concerns, curbing investor enthusiasm. Nifty’s breach of its trading range hints at impending corrections in the short term.
One expert observed, “Immediate resistance at 25,400; expect continued volatility from global factors.” Bank Nifty experienced profit-taking, flashing bearish patterns, with key support at 60,000-60,200. Short-term range for Bank Nifty: 60,000-61,750.
Siddharth Khemka of Motilal Oswal emphasized a cautious outlook, noting domestic strengths in economy and sectors could cushion blows, but FII flows and world events hold sway.
US-Iran nuclear talks yielded no breakthroughs, impacting sentiment. Next week’s discussions are on the horizon, but doubts linger over US responses and their ripple effects on energy and stability, fostering a vigilant market atmosphere.
Markets may consolidate sideways next week, weighing India’s solid base against global storm clouds.