Benchmark indices posted their worst weekly performance in three weeks as Brent crude oil prices surged 3.75% to $109.7 per barrel and geopolitical tensions in West Asia kept markets on edge. According to The Financial Express, the Sensex plunged 2.70% for the week, closing at 75,237.99 on Friday, while the Nifty slumped 2.20% to end at 23,643.50. The week began with sharp losses on Monday and Tuesday, when both indices lost over 1.5% each, followed by range-bound trading on Wednesday before a relief rally on Thursday driven by index heavyweights HDFC Bank and Bharti Airtel. However, Friday saw renewed selling pressure with the Sensex losing 160.73 points (0.21%) and the Nifty falling 46.10 points (0.19%).
Beyond geopolitical uncertainty, domestic markets faced mounting pressure as Brent crude oil prices surged 3.75% during the week to $109.7 per barrel, while the Indian rupee closed at a fresh record low of 95.97 against the US dollar. According to The Financial Express, the weakening rupee, coupled with continued foreign portfolio investor outflows, dented investor sentiment significantly. As reported by Mint, domestic petroleum product consumption fell nearly 5% year-on-year in April to a four-year low, even before the latest fuel price hike. The government raised retail petrol and diesel prices by nearly ₹3 per litre on Friday, marking the first major fuel price hike in nearly four years.
Investors suffered a notional wealth loss of ₹12.9 lakh crore during the week, with ₹2.26 lakh crore eroded on Friday alone. According to The Financial Express, foreign portfolio investors sold shares worth ₹10,106.91 crore, while domestic institutional investors bought shares worth ₹18,524.53 crore during the week. Broader market indices witnessed sharper declines, with the BSE Midcap falling 3.19% and BSE Smallcap declining 3.59% - marking their steepest weekly decline in nine weeks. Among individual stocks, Titan Company, Reliance Industries, Tech Mahindra, Mahindra & Mahindra, and Eternal were the top Sensex losers, declining by up to 7.64%.
Real estate emerged as the top loser this week, falling nearly 8% as rising bond yields and inflationary concerns reduced risk appetite for interest rate-sensitive sectors. As reported by The Financial Express, realty, IT, consumer durables, auto, and PSU banks emerged as the top sectoral losers, falling by up to 8.17%, while pharma, healthcare, and metals were the only gaining sectors, rising by up to 2.18%. IT stocks rebounded sharply on Friday after recent corrections, aided by value buying, supportive global tech cues, and improving confidence in long-term enterprise artificial intelligence spending. However, IT remained the week's second-worst performing sector after automobiles. Among Asian markets, besides India, Indonesia (down 4.89%), Japan (down 1.72%), and South Korea (down 1.13%) were among the top losers, while Singapore (up 1.92%) and Thailand (up 1.35%) emerged as the top gainers.
Global sentiment remained cautious as rising US bond yields stalled the artificial intelligence-led rally that had powered East Asian equities in recent months. According to The Financial Express, rising global bond yields and sustained dollar strength weighed on risk appetite, leading to intermittent FII outflows and continued pressure on the rupee. Market participants are closely tracking developments around the Trump–Xi summit amid escalating tensions over Taiwan, while also waiting for clarity on the reopening of the Strait of Hormuz. As noted by Vinod Nair from Geojit Investments, "The market remained volatile during the trading sessions and closed marginally lower mainly due to lingering fears around the possibility of renewed escalation in the Middle East conflict."
