Mumbai, April 25: The Indian stock market experienced a substantial decline this week, driven by escalating tensions in West Asia, a sharp rise in crude oil prices, and heavy selling in IT stocks.
The benchmark indices closed lower, with the Sensex falling by 2.3 percent and the Nifty50 dropping by 1.9 percent on a weekly basis. However, midcap and small-cap stocks were less affected, with the BSE Midcap Index down by just 0.6 percent and the Smallcap Index down by 0.2 percent.
In terms of liquidity, foreign institutional investors (FIIs) sold shares worth ₹1,369 crores this week, while domestic institutional investors (DIIs) purchased shares worth ₹9,782 crores.
The IT sector was the most impacted, witnessing a nearly 10 percent decline due to expectations of weak quarterly results. However, Infosys and Tata Consultancy Services reported decent earnings.
Conversely, the FMCG sector performed well, with companies showing double-digit growth. The BFSI sector remained stable, maintaining good asset quality.
Analysts noted that the market experienced volatility throughout the week. Investor uncertainty persisted due to the U.S.-Iran tensions in West Asia and disruptions in the Strait of Hormuz.
Rising crude oil prices and political uncertainty led to cautious buying from investors, resulting in a negative market sentiment. Continuous selling by foreign investors added pressure on the market, although domestic buying helped mitigate some of the declines.
Events in West Asia also weighed heavily on the market. Initially, Iran announced the reopening of the Strait of Hormuz, but subsequent U.S. actions reinstated sanctions, causing crude oil prices to surge by 15 percent to $107 per barrel.
In addition, U.S. President Donald Trump extended the ceasefire with Iran indefinitely, further increasing uncertainty in the region.
Investors are also closely monitoring the financial results of companies for the fourth quarter of fiscal year 2026, covering January to March.
On the last trading day of the week, the BSE Sensex closed down by 999.79 points, or 1.29 percent, at 76,664.21, while the NSE Nifty50 fell by 275.10 points, or 1.14 percent, to settle at 23,897.95.
During the day’s trading, the Sensex opened at 77,483.80 but plummeted by 1,260 points, or 1.6 percent, to reach an intraday low of 76,403.87. The Nifty opened at 24,100.55 and dropped by 359 points, or 1.5 percent, to an intraday low of 23,813.65.
Looking ahead, investors will focus on India’s IIP data for March 2026, along with PMI data from the U.S., China, and Japan, as well as U.S. PCE inflation figures. Additionally, major central banks, including the Federal Reserve, Bank of England, and European Central Bank, will announce their policies, which will influence market direction.
My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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