Indian equity markets closed lower for a fifth consecutive week, marking the longest losing streak in eight months, as geopolitical tensions, elevated crude oil prices, and currency weakness intensified selling pressure.
The benchmark Nifty 50 declined 2.09 percent on Friday to close at 22,819.60, while the BSE Sensex fell 2.25 percent to settle at 73,583.22. For the week, both indices declined by approximately 1.3 percent. Midcap and smallcap indices also registered losses of 1.4 percent and 0.6 percent, respectively.
The decline was driven primarily by foreign capital outflows and a weakening rupee against the US dollar. The rupee closed at a record low of 94.8125. Crude oil prices remaining above $100 per barrel weighed on India’s economic outlook and investor sentiment, contributing to sustained selling activity.
Since the February 28 attack on Iran by the United States and Israel, the Nifty and Sensex have declined by approximately 9.5 percent. The volatility index rose to 27.09, its highest level since June 2024, indicating heightened market uncertainty.
Goldman Sachs reduced its 2026 GDP growth forecast for India to 5.9 percent and downgraded its rating on Indian equities from ‘overweight’ to ‘marketweight’, adding to market pressure.
US President Donald Trump granted Iran an additional 10-day deadline to reopen the Strait of Hormuz, warning that failure to comply could result in targeting of its power plants. Iran rejected a 15-point proposal from the United States, describing it as ‘unreasonable’.
Elevated oil prices have also affected corporate margins, with estimates suggesting a decline from around 16 percent to 9 percent, potentially weakening earnings projections.
On a weekly basis, the energy and metal sectors declined by 1.9 percent and 2.2 percent, respectively. HDFC Bank shares fell 3.1 percent, marking a fifth consecutive weekly decline and the longest losing streak in six years, following a sudden resignation and regulatory review.
In contrast, ONGC shares rose 6.2 percent during the week, supported by sustained high crude oil prices, marking its best performance in the past two months. The week reflected a mixed trend across stocks, with both gains and losses observed.
