Indian Stock Market Declines for Seventh Consecutive Week Amid Global Concerns

Mumbai, September 26 (Daily Kiran) : The Indian stock market faced a decline for the seventh consecutive week, largely driven by global concerns. High crude oil prices, rising U.S. bond yields, and persistent selling by foreign institutional investors (FIIs) contributed to a drop of up to 0.88% in the major benchmarks, Sensex and Nifty.

On a weekly basis, Nifty weakened by 0.88%, though it saw a slight recovery of 0.34% on the last trading day, closing at 23,140. Meanwhile, Sensex gained 315 points, or 0.43%, to finish at 73,895 on Friday, but recorded a 0.54% decline over the week.

The week was marked by significant volatility in the markets. Both indices dropped more than 1.6% on Thursday, but limited recovery occurred on Friday due to selective value buying in certain stocks.

Market experts noted that Brent crude oil prices remained above $105 per barrel throughout the week, while WTI crude traded above $90. Geopolitical tensions in West Asia and concerns over global supply supported the oil market. However, a slight easing in oil prices towards the week’s end reduced some pressure on import bills, inflation, the rupee, and corporate costs.

In addition, the U.S. bond market heightened investor concerns, with the yield on the 10-year Treasury reaching over 5.10% during the week. Analysts suggest that high yields tighten global financial conditions, making emerging market assets less attractive.

The persistent selling by foreign investors has posed a significant challenge for the market. According to exchange data, FIIs have been net sellers for six consecutive weeks, offloading shares worth ₹11,490 crore during this period. In contrast, domestic institutional investors (DIIs) continued their buying spree, making a net investment of ₹16,398 crore, which somewhat cushioned the market’s decline.

So far in September, FIIs have sold a total of ₹18,531 crore, while DIIs have made net purchases of ₹52,617 crore. Despite this, Nifty remains approximately 3.9% lower than its levels at the end of August.

Market participants are now closely monitoring developments in West Asia. Reports indicate that Iran has proposed a new seven-day plan to the U.S., which includes lifting naval blockades, easing oil sanctions, and a comprehensive ceasefire in exchange for reopening the Strait of Hormuz. Investors believe that progress in this area could reduce the geopolitical premium on oil prices.

Technical analysts suggest that the 23,000 level remains an immediate support area for Nifty, while 23,200 serves as the nearest resistance. The market’s direction will largely depend on foreign investment flows, crude oil prices, and global cues.

Experts warn that if FII selling continues and global conditions remain challenging, market volatility could persist. Nevertheless, the ongoing buying by domestic institutional investors is playing a crucial role in protecting the market from significant losses.

Next week, investors will focus particularly on Brent crude oil prices, developments in U.S.-Iran talks, and the U.S. Q2 GDP figures, which could play a vital role in determining the market’s next direction.