Indian equities faced a turbulent week, capped by a sharp 2.9 percent decline in Sensex and Nifty, driven by FII selloffs exceeding ₹23,000 crore and spiking oil prices due to Middle East flare-ups. The Sensex shed 2,368 points to end at 78,918.90, and Nifty lost 728 points, closing at 24,450.45.
Geopolitical unrest pushed Brent crude towards $86/barrel, fueling inflation fears and prompting foreign investors to pull back in a classic de-risking move. DIIs countered with steady purchases, preventing a steeper rout.
Most sectors closed in the red: Realty led losses at 4.9 percent, followed by oil & gas (4.8%), banking (4.6%), autos (3.9%), and durables (3.1%). Capital goods bucked the trend with a 0.2 percent gain, while defense shares rallied 3 percent on heightened global tensions.
Ventura Securities’ Vineet Bolingkar highlighted the tug-of-war between global risks and domestic strength. ‘FII de-risking amid energy price surges is evident, but DII and SIP inflows have provided critical support,’ he observed.
With India VIX soaring 11 percent, volatility is at peak levels. Yet, analysts remain optimistic, pointing to Nifty’s proximity to key support at 24,450 and robust retail participation as signs of enduring market health.