Sensex, Nifty decline during the week amid elevated crude oil prices, geopolitical uncertainties

After gaining for two consecutive weeks the domestic equity benchmark indices declined this week as elevated crude oil prices near USD 90 per barrel and lingering global uncertainties continued to weigh on investor sentimentHow did the indices performThe market largely remained rangebound throughout the week and had edged up marginally on Monday However the impasse between US and Iran over the Strait of Hormuz and concerns of possible disruptions in oil supply made the investors cautious The Nifty extended its losses for the fourth straight day o Friday to end at 24366The 50share NSE Nifty slipped 083 per cent during the week while the 30share BSE Sensex dipped 062 per cent to settle at 7800925Sectorally media realty and consumer durables outperformed during the week while metals FMCG pharmaceuticals and auto were among the key laggardsMarkets remained rangebound through the week amid elevated crude and persistent global uncertainty While softerthanexpected US labour market data initially supported expectations of a patient Fed US Federal Reserve the subsequent rebound in crude shifted focus back to inflation risks and evolving geopolitical developments Vinod Nair Head of Research Geojit Investments saidDomestically betterthanexpected corporate earnings stability in the rupee moderation in the domestic 10year bond yield and a gradual improvement in FII participation provided support to the domestic macro environment despite external headwinds he addedForeign Institutional Investors FIIs were net buyers of Rs 122824 crore equities opening with two sessions of buying reversing into two of selling and returning as buyers on the final day according to Pabitro Mukherjee Deputy Vice President Research Bajaj BrokingNifty started the week on a flat note however profit booking at higher levels saw the index dragging lowerBank Nifty also traded in a range and closed marginally lower by 04 per cent Broader market relatively outperformed with Nifty Midcap 100 index hitting a fresh all time high and closing the week up by 05 per cent While Nifty small cap 100 hovering around the alltime high and closing the week down by 07 per cent Mukherjee addedOn Wednesday following Tata Sons Chairman N Chandrasekarans resignation Tata Group stocks tumbled on the stock exchanges and the benchmark indices declined apart from the sustained crude oil pressureMarket OutlookIn the coming week investors will closely track crude oil price movements and developments in the ongoing USIran geopolitical tensions according to analysts The global oil benchmark Brent Crude was at USD 8852 per barrel on FridayIndian equities are likely to remain rangebound next week as global cues and macro developments assume greater importance following the conclusion of the Q1FY27 earnings season Going forward stockspecific action is likely to become more selective as investors assess the sustainability of the earnings recovery and broader domestic fundamentals Developments in West Asia crude oil prices and global sentiment will remain the key nearterm drivers Siddhartha Khemka Head of Research Wealth Management Motilal Oswal Financial Services saidHe added that the market will also track US Federal Reserves July meeting minutes and US crude inventory data along with Indias infrastructure output and August flash Purchasing Managers Index PMI readings later in the week