Sensex, Nifty end week lower as global tensions and oil surge weigh on markets

Indian equity markets closed the week on a weaker note, with benchmark indices slipping amid sustained foreign investor selling and a sharp rise in global crude oil prices.

The Nifty 50 declined by 0.73 per cent over the week and fell 0.74 per cent on the final trading session to settle at 23,997. Meanwhile, the BSE Sensex dropped 582 points on the day, ending at 76,913, marking a weekly loss of 0.97 per cent.

Market sentiment remained cautious as geopolitical tensions, particularly disruptions in the Strait of Hormuz, continued to unsettle global markets. The situation has contributed to elevated crude oil prices, which climbed to around $126 per barrel — their highest level in four years — raising concerns over inflation and potential fuel price increases.

The surge in oil prices has also put pressure on the Indian rupee and heightened fears of capital outflows, given India’s dependence on energy imports.

Sectorally, most indices ended in negative territory. Metal, public sector banking, realty and FMCG stocks were among the worst performers. However, information technology and pharmaceutical shares showed relative resilience, providing some support to the market.

Broader markets presented a mixed picture. While the Nifty Midcap100 index edged down by 0.28 per cent, the Nifty Smallcap100 index managed to gain 1.62 per cent during the week, indicating selective buying interest beyond large-cap stocks.

Despite the overall weakness, early corporate earnings for the fourth quarter of FY26 offered some optimism. Investors appeared to favour defensive and consumption-driven sectors such as healthcare, telecom and energy, which outperformed amid the volatility.

Analysts noted that persistent geopolitical risks and inflationary pressures could keep the US Federal Reserve inclined towards a tighter monetary stance through 2026, adding to uncertainty around interest rates globally.

Looking ahead, the Nifty 50 is expected to trade within a narrow range of 23,500 to 24,500 in the near term. The banking index underperformed the broader market, with the Bank Nifty ending the week at 54,863, down 2.56 per cent.

Experts anticipate continued consolidation in banking stocks, with the index likely to move within a broad band of 54,000 to 57,500, driven largely by stock-specific action during the ongoing earnings season.

With IANS inputs