Indian benchmark indices extended their losing streak for the fifth consecutive week, with the Sensex declining 121 points to close at 74,781.76 and the Nifty falling 79.70 points to settle at 23,398.10. According to latest market data, both indices closed lower during the Friday trading session, with the Sensex having declined 120.83 points or 0.16% and the Nifty 50 losing 79.70 points or 0.34%. During the Friday trading session, the Sensex tanked 120.83 points or 0.16% to 74,781.76 before recovering marginally. After a weak opening, the market staged a brief pullback in the initial hours but failed to sustain gains as profit booking intensified throughout the session. In five consecutive weeks, the Sensex and Nifty have declined 2% each, with the Nifty Bank and Nifty Midcap index slipping 1% each during this extended losing streak. The BSE MidCap Select index declined 0.59% while the BSE 250 SmallCap Index shed 0.03%, as reported by Business Standard. In just five sessions, the Sensex has lost 938 points, or 1.2%, while the Nifty 50 has lost 1.1%, highlighting the accelerated decline in recent trading.
The market decline was primarily driven by Brent crude futures climbing further to trade near $108.35 per barrel, down 0.54% after jumping 5.9% on Thursday to settle at $107.63 per barrel. As reported by The Hindu, Brent crude remained elevated around $97 as the dollar hovered near 98.95, with Iran threatening tighter controls around the strategic waterway, raising concerns over possible disruptions to global oil supplies. Brent crude prices have moved towards the $108 mark amid escalating tensions involving Houthi forces and Saudi Arabia, while WTI crude is trading in the $103–104-per-barrel range after rising around 7.5% in the previous session. Brent crude prices have climbed to their highest level since May as the ongoing US-Iran conflict continues to disrupt oil flows from the Middle East, putting fresh pressure on global markets and raising concerns over India's economic outlook. For India, crude prices approaching USD 110 a barrel could further intensify pressure on inflation, the rupee, the current account and corporate margins, while also reducing the scope for monetary easing, according to Hariselvan Radhakrishnan, Founder & CEO of HST Wealth. India is particularly vulnerable to rising crude prices as the country meets more than 80% of its crude oil requirements through imports, making sustained increases in oil prices a significant concern for the economy. The rise in crude has also strengthened inflation concerns and complicated the Federal Reserve's policy outlook, with markets pricing in more than a 60% probability of a 25-basis-point Fed rate hike at the September meeting.
Sectoral performance remained mixed throughout the trading session, with banking stocks leading the recovery while realty, metals, and chemicals faced significant pressure. According to Business Standard, the Nifty Realty index fell 2.70% to 848.50, tanking 7.6% in the six consecutive trading sessions. Godrej Properties declined 6.62%, Lodha Developers fell 4.59%, Aditya Birla Real Estate dropped 4.17%, Prestige Estates Projects fell 2.95%, Oberoi Realty declined 2.23%, DLF dropped 1.73%, Anant Raj fell 1.72%, Sobha declined 1.53%, and Brigade Enterprises fell 1.4%. Among sectors, the Nifty Private Bank index rose 0.5%, while the Metal and Realty indices declined more than 2% each, with Auto, Energy, Oil & Gas, and PSU Bank indices falling 0.5% each. Realty stocks saw heavy selling pressure as expectations of a rate hike increased, with Godrej Properties falling 6.62% among the biggest losers in the sector. Cochin Shipyard declined 9% after the company gave cautious guidance for FY27, making it one of the biggest losers in the session. Metal-related stocks declined, tracking lower prices, with NALCO, Hindustan Zinc and NMDC falling 2-3%. Supreme Industries and Astral also slipped around 4% each on demand concerns. However, there was buying in select IT stocks at lower levels, with Tech Mahindra and Wipro gaining around 1% each. Dr Reddy's Laboratories was among the top Nifty gainers, ending 2% higher, while capital-market stocks also moved higher in the last hour of trade, with BSE and Angel ending 5% off their lows. Fintech stocks saw a strong move, with Paytm, Pine Labs and MobiKwik rising up to 5%.
Foreign Institutional Investors (FIIs) offloaded equities worth ₹438.24 crore on Thursday, according to exchange data, highlighting continued foreign investor caution amid rising crude prices. Despite this selling pressure, Indian benchmark indices ended higher in the previous session with the Sensex advancing 138.36 points, or 0.19%, to settle at 74,902.59 and the Nifty edging higher by 46.30 points, or 0.20%, to end at 23,477.80 on last-minute buying. The market breadth was negative with 2,018 shares rising and 2,470 shares falling on the BSE, while a total of 241 shares remained unchanged. The NSE's India VIX, a gauge of the market's expectation of volatility, shed 0.51% to 11.10. Global markets are trading lower as elevated oil prices intensify concerns over inflation and the interest-rate outlook, as noted by Hariselvan Radhakrishnan. Asian markets came under pressure amid the rise in oil prices, with South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index trading significantly lower, while US markets also ended in negative territory on Thursday. The sharp increase in crude prices is likely to heighten concerns over India's import bill, inflation and corporate margins, keeping risk appetite subdued, according to Ponmudi R, CEO of Enrich Money.
The Indian rupee traded weak at 94.81, down 0.29% as the dollar hovered near 98.95, as reported by Zee News. Looking at Asian markets, Tokyo's Nikkei 225 gave up early gains, sinking 1.7% to 65,269.33 as major exporters were sold due to a surge in the value of the Japanese yen. Shares in Toyota Motor Corp. shed 4.1%, while electronics maker Panasonic Holdings Corp. fell 5.8%. South Korea's Kospi fell back after an early rally, losing 0.6% to 6,954.52, with shares in Samsung Electronics handing back early gains to slip 0.2%. Hong Kong's Hang Seng lost 0.4% to 25,317.18, and the Shanghai Composite index edged 0.2% higher, to 3,940.55. China said its exports jumped 25% year-on-year in August, driven by strong demand for autos and high-tech items, as reported by The Hindu. The market breadth was negative with 2,018 shares rising and 2,470 shares falling on the BSE, while a total of 241 shares remained unchanged. Broader indices also ended lower, with Nifty Midcap index declining 0.26%, and Smallcap index falling 0.6%, as reported by The Hindu.
