Markets ended week lower amid FII outflows and rising crude prices

The Indian equity benchmarks ended the week on a subdued note, weighed down by sustained foreign institutional investor (FII) outflows and a sharp surge in global crude oil prices, which dampened overall market sentiment. Despite resilience in broader markets, analysts expect indices to remain range-bound amid persistent global uncertainties, inflation concerns, and earnings season volatility.The Nifty 50 declined 0.73 per cent over the week and fell 0.74 per cent on the final trading day to close at 23,997. Meanwhile, the BSE Sensex dropped 582 points, or 0.75 per cent, to settle at 76,913, ending the week with a loss of 0.97 per cent.
Market sentiment remained cautious as geopolitical tensions and supply disruptions, particularly around the Strait of Hormuz, continued to influence global markets. Analysts noted that the absence of meaningful progress in negotiations has kept investors on edge.

#Markets end week lower as FII outflows and crude at $126 weigh on sentiment. Nifty slips below 24K; broader markets resilient, but volatility likely to persist. pic.twitter.com/kiCLQQ8qf8

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According to information, the crude oil prices surged to $126 per barrel, the highest level in four years, intensifying inflationary concerns and raising the risk of fuel price hikes. The spike in oil prices also exerted pressure on the Indian rupee, fuelling worries about capital outflows and widening fiscal deficits, given India’s dependence on energy imports.On the sectoral front, most indices ended in the red, with metals, PSU banks, realty, and FMCG stocks among the major laggards. However, IT and pharma stocks displayed relative resilience, offering some support to the market.Broader markets diverged from the benchmarks, with the Nifty Midcap100 slipping just 0.28 per cent, while the Nifty Smallcap100 gained 1.62 per cent, indicating selective buying interest.
Despite the volatility, early Q4FY26 earnings provided a degree of optimism, with defensive sectors such as healthcare, telecom, and energy outperforming.Looking ahead, analysts expect the Nifty 50 to trade within a broad range of 23,500 to 24,500 in the near term, with geopolitical developments, crude price movements, and earnings outcomes likely to guide market direction.The Bank Nifty underperformed, closing at 54,863, down 2.56 per cent for the week. It is expected to remain in consolidation within the 54,000–57,500 range, driven by stock-specific action during the ongoing banking sector earnings season.

(Business Correspondent)