Indian stock markets ended lower on Friday as rising crude oil prices, weak global cues and continuing tensions in West Asia kept investors cautious. The Sensex fell 120.83 points, or 0.16%, to close at 74,781.76, while the Nifty 50 declined 79.70 points, or 0.34%, to settle at 23,398.10.
The decline came after a highly volatile session. The benchmarks opened sharply lower, with the Sensex falling more than 700 points and the Nifty dropping below 23,250 in early trade. The market later recovered much of the morning losses as buying emerged in selected heavyweight stocks.
Friday’s fall extended the recent weakness in the Indian stock market. Both benchmark indices recorded their fifth straight weekly decline. The Nifty ended the week more than 2% lower, while the Sensex also lost over 2%. Over the past five weeks, both indices have fallen nearly 4.8%, reflecting the growing pressure from global risks and expensive crude oil.
The biggest concern for investors remained crude oil. Brent crude prices rose sharply during the week and moved above $100 a barrel as tensions in the Middle East disrupted supply expectations. The latest rise followed attacks and threats affecting shipping routes around the Strait of Hormuz and the Red Sea.
Higher crude prices are particularly worrying for India because the country imports a large share of its oil requirements. A prolonged increase in oil prices can raise India’s import bill, put pressure on the rupee and increase inflation risks. It can also squeeze the profits of companies that depend heavily on fuel and other energy inputs.
The impact was visible across several sectors. Metal stocks came under pressure as investors worried about higher input costs and weaker global economic conditions. Tata Steel was among the biggest Sensex losers, falling 1.67%. Reliance Industries declined 1.33%, while Sun Pharmaceutical Industries, Bajaj Finance and NTPC also ended lower.
HDFC Bank was the strongest performer among Sensex stocks, gaining 2.02%. Tech Mahindra rose 1.38%, while HCL Technologies advanced 0.85%. Eternal also finished higher. The gains in these stocks helped the broader market recover from its steep early decline.
Among Nifty stocks, HDFC Life Insurance, Power Grid Corporation, ONGC, Bharti Airtel and Tech Mahindra were among the notable gainers. On the other side, HCL Technologies, Hindalco Industries, Tata Steel, Adani Enterprises and Mahindra & Mahindra were among the leading losers.
The IT sector remained under pressure during the week. The Nifty IT index recorded a sharp weekly decline as investors worried that higher US inflation and bond yields could limit the Federal Reserve’s room to ease monetary policy. The sector fell about 5.8% for the week, making it the weakest major sectoral index.
Financial stocks also faced pressure. The Nifty financial services sector declined during the week, while HDFC Bank and ICICI Bank remained under watch. HDFC Bank had fallen for six consecutive weeks before Friday’s recovery, with investors also tracking uncertainty surrounding its future leadership.
The broader market was not spared either. Small-cap and mid-cap stocks recorded weekly losses as investors reduced exposure to riskier assets. Fourteen of the 16 major sectors recorded losses during the week, showing how widespread the selling pressure had become.
The rupee also added to market concerns. The Indian currency recorded its sharpest weekly decline since May, falling about 1% against the US dollar. A weaker rupee can make imported crude oil more expensive, adding another layer of pressure on India’s inflation and current account outlook.
Bond yields have also risen as investors assess the inflation impact of higher oil prices. The rise in global yields has made equities less attractive and increased concerns that central banks may keep interest rates higher for longer.
Foreign investor activity remains another concern for Dalal Street. Foreign institutional investors sold shares worth ₹438.24 crore on Thursday, while domestic institutional investors bought equities worth ₹1,025.85 crore. The domestic buying provided some support but was not enough to completely offset the broader negative sentiment.
Investors are now closely watching crude oil prices, developments in the Middle East and upcoming US inflation data. The US data could influence expectations around the Federal Reserve’s next interest-rate decision and, in turn, determine the direction of global markets.
With the Sensex and Nifty already coming off five consecutive weekly losses, investors are likely to remain cautious. Any easing in geopolitical tensions or crude prices could provide relief, but another spike in oil prices could put fresh pressure on Indian equities.
Indian markets will remain closed on Monday for a local holiday, giving investors an additional day to assess global developments before trading resumes.