Rising crude, West Asia tensions to steer Dalal Street next week

The Indian stock market ended the week on a weak footing, extending its losing streak for the fifth consecutive week, as rising crude oil prices, a weakening rupee and escalating tensions in West Asia weighed heavily on investor sentiment.

Both benchmark indices — BSE Sensex and Nifty 50 — posted sharp declines on Friday (27 March), falling more than 2 per cent each. The Sensex tumbled 1,690 points, or 2.25 per cent, to close at 73,583, while the Nifty dropped 487 points, or 2.09 per cent, to settle at 22,819.60.

Market experts noted that global headwinds are likely to remain the dominant drivers in the coming week. Technically, analysts warned that a decisive breakdown below the 22,700–22,500 range on the Nifty could intensify selling pressure, potentially dragging the index towards the 22,000–21,744 zone, near its 52-week lows.

On the upside, the 23,000–23,100 band is expected to act as immediate resistance, followed by a stronger supply zone between 23,300 and 23,500.

Broader markets mirrored the weakness, with midcap and smallcap indices also ending in the red, reflecting widespread selling pressure.

Geopolitical tensions in West Asia have emerged as a key overhang for global markets, with uncertainty surrounding potential negotiations between the United States and Iran keeping investors cautious.

Crude oil prices have surged sharply amid the conflict, with Brent crude climbing above $112 per barrel. The spike is particularly concerning for India, a major oil importer, as it risks fuelling inflation and widening the trade deficit.

The Indian rupee has also come under pressure, slipping past the 94 mark against the US dollar, further dampening sentiment.

Meanwhile, safe-haven demand has surged, pushing gold and silver prices higher. Both precious metals gained over 3 per cent on Friday as investors sought refuge amid rising global uncertainty, signalling continued risk aversion in financial markets.

With geopolitical risks, currency weakness and elevated crude prices in focus, analysts expect volatility to persist on Dalal Street in the week ahead.

With IANS inputs