Indian benchmark indices witnessed continued weakness on Friday, with the NSE Nifty 50 declining 102 points, or 0.43%, to close at 23,767.45 - its lowest closing level since June 12, 2026. The BSE Sensex fell 2,091 points, or 0.43%, to close at 76,059, marking the fifth consecutive session of losses for both indices. For the week, the Nifty 50 shed 2.33% while the Sensex declined 2,091 points on a weekly basis. The session opened with sustained selling pressure that pushed the indices lower throughout the trading day. The broader market sentiment remained weak, with India VIX climbing 5.34% to 14.20, indicating elevated market volatility. Market breadth was negative, with 1,290 stocks advancing against 2,264 declining, while the Nifty Midcap 100 and Nifty Smallcap 100 indices also fell 0.10% and 0.32% respectively. Out of the 500 stocks in the Nifty 500 universe, 2,264 settled in the red, reflecting widespread selling beyond frontline names.
Auto and aviation stocks came under significant pressure as Brent crude climbed back above the $100-a-barrel mark after attacks by Iran-backed Houthis on Saudi oil tankers in the Red Sea compounded disruptions around the Strait of Hormuz. The Nifty Auto index was down 1.02% at 27,240.50, underperforming the broader market significantly. Hero MotoCorp fell nearly 2.8%, while Mahindra & Mahindra declined around 2.4% and InterGlobe Aviation (IndiGo) dropped nearly 2%, emerging among the major losers as higher aviation turbine fuel (ATF) costs threatened to pressure airline profitability. Eicher Motors and TVS Motor Company each slipped more than 1%, while Tata Motors, Bajaj Auto and SpiceJet also traded lower. Maruti Suzuki stood out as the lone major gainer in the pack, rising marginally by about 0.3%. Eternal, Bajaj Finance, and Mahindra & Mahindra were among the biggest drags on the Nifty 50 for the week.
The latest surge in crude oil prices followed a sharp rally after the conflict in the Middle East intensified further, with Brent crude crossing the psychological $100-a-barrel mark after attacks by Iran-backed Houthis on Saudi oil tankers in the Red Sea. Although Brent eased slightly in early Friday trade to just below $100 per barrel, it remained on track for a weekly gain of more than 13%, while US West Texas Intermediate crude was headed for gains of nearly 11%. As per The Hindu BusinessLine, Iran's rejection of a US-backed ceasefire proposal, conveyed through Iraqi mediation, deepened concerns over prolonged supply disruptions through the Strait of Hormuz and the Red Sea, keeping energy markets on edge. A sustained rise in crude oil prices affects automobile manufacturers through multiple channels, increasing the cost of key petroleum-based inputs such as plastics, synthetic rubber, paints and other derivatives, potentially squeezing margins if companies are unable to pass on higher costs to customers. Airlines face a more direct impact because aviation turbine fuel is among their largest operating expenses, with a sharp increase in crude prices typically pushing up ATF prices and putting pressure on profitability.
The Indian rupee faced significant pressure, reversing sharply after staging early gains, with the spot USDINR pair trading around ₹96.55 to the dollar, weighed down by surging crude import demand, foreign institutional outflows, and broad dollar strength. The rupee closed at around ₹96.55 per US dollar, recovering modestly, likely aided by RBI intervention, after crude pulled back from near $101 to around $96.50 a barrel intraday. Gold saw profit-booking after a sharp 4% rally over the preceding three to four sessions, with MCX Gold slipping nearly ₹1,000 to around ₹1,41,800, with COMEX Gold finding support near the $4,000 mark. Despite the pullback, analysts said the metal's longer-term bias remains positive, with MCX Gold expected to trade in the ₹1,40,000–₹1,47,000 band in coming sessions. The US Dollar Index remained firm near 101.30, capping further gains.
Rate-sensitive sectors led the market decline during the week, with private banks and realty indices shedding over 4.5% each. Auto, metals and energy also dragged on performance, while IT, media, and PSU banks closed with marginal gains on Friday. FMCG was the lone sectoral bright spot for the week, rising nearly 1%, buoyed by strong quarterly earnings from sector leaders. Foreign Institutional Investors net sold equities worth ₹3,289.31 crore during the week, while Domestic Institutional Investors provided a partial cushion with net inflows of ₹3,184.03 crore. India's HSBC Flash Composite PMI also eased sharply to 54.3 in July from 57.1 in June, its slowest pace of private sector expansion in over four years. The US 10-year Treasury yield climbed to around 4.71%, raising the spectre of further foreign capital outflows from emerging markets.
