Indian equities wrapped up the week on a subdued note, with the Nifty 50 and BSE Sensex both slipping into the red on Friday as rising crude and renewed Middle East tensions kept investors risk-averse.
As of 3:32 pm IST, the NIFTY 50 was at 24,366.00, down 29.85 points or 0.12% on the day. The BSE SENSEX closed at 78,009.25, lower by 70.71 points or 0.091%. After two straight weeks of gains, the week ended with losses of 0.8% for Nifty and 0.6% for Sensex.
The intraday chart showed a tug-of-war. Nifty opened at 24,361.90, climbed to a day’s high of 24,405.20, then drifted to 24,296.80 before settling. The Sensex too seesawed between 77,684.37 and 78,048.91, unable to hold onto early gains.
Black Gold Turns Bearish
Crude was the spoiler. Brent jumped 4.6% this week to around $87 a barrel after US-Iran peace talks stalled.
According to latest reports, the US signaled it could keep a naval blockade on Iran indefinitely and dial up economic pressure on Tehran. For India, which imports more than 80% of its oil, that raises the specter of higher inflation and squeezed corporate margins.
“As long as the macroeconomic concerns arising from higher crude oil prices persist, we are unlikely to see a unidirectional move in the market,” said Pankaj Pandey, head of retail research at ICICI Securities.
The impact was broad-based. 15 out of 16 NSE sectoral indices ended the week lower. Metals were the worst hit, falling 1.9%, while financials, the biggest weight in the Nifty, dropped 1%. Energy, FMCG and industrials also lagged.
Heavyweights Drag, Midcaps Hold Ground
The index was dragged down by its own heavyweights. Reliance Industries slid 1.9% on the week after MSCI cut its weight in the global index during a rejig.
Broader markets offered a small buffer. Mid-cap stocks gained 0.5% for the week, while small-caps declined 0.7%. The quarterly earnings season also concluded, and most companies delivered numbers ahead of estimates. But the positivity failed to translate into a sustained rally.
Geopolitics and Tariffs Weigh on FIIs
It’s not just oil. Geopolitical risk has made a comeback, and foreign investors are voting with their feet.
FPIs have pulled out a net $13 billion+ from Indian equities in 2026 so far, with about $2.4 billion of that coming in the first half of August alone. The trigger: the US decision to hike tariffs on Indian exports to 50%, one of the steepest rates globally.
That explains the performance gap. While the Nifty is up 5.2% YTD, broader Asia is up 17.2% and EMs 18.2%. Brokerages have now pushed out expectations for a new Nifty record to 2026, with a year-end target of around 25,834.
Markets are also eyeing the US-Russia summit on August 15. Any breakthrough could ease sanctions on Moscow and cool oil prices. Until then, traders are likely to stay cautious.
Sectoral Scorecard: IT, Banks Find Bids; Commodities Slip
There were pockets of strength. IT and pharma got support from softer US inflation data and hopes of a dovish Fed. Banking and consumer durables also saw buying on expectations of a consumption pickup.
The losers’ list was led by commodities. Metal stocks fell sharply, followed by oil & gas and FMCG names facing margin pressure from higher input costs.
What Next: Rangebound Until Oil Calms
With earnings out of the way, the focus shifts entirely to global cues.
On the positive side, S&P recently upgraded India’s sovereign rating outlook, citing policy continuity and infra-driven growth. But that is being countered by external risks.
“Until foreign investors are confident in the Indian economy and earnings…I don’t think we’ll see a substantial rise from here,” noted Yogesh Kalinge of A.K. Capital Services.
Technically, the Nifty is far from its 52-week high of 26,373.20, and the Sensex is well below 86,159.02. Key support now sits near 24,200 for Nifty and 77,600 for Sensex.
In a Nutshell
Friday’s close sums up the mood on Dalal Street: fundamentally okay, globally uneasy. With crude hovering near $87, West Asia in focus, and FII selling continuing, expect volatility to stay high.
For investors, this means the rally will be stock-specific rather than index-led. A decisive fall in oil or a thaw in trade tensions is what the market needs to break out of this consolidation.
Markets close on mixed note
Indian equities ended on a mixed note on Thursday, August 13, with the Sensex managing a small gain while the Nifty slipped into the red. Traders stayed on edge ahead of domestic and US inflation data, even as a surprise leadership exit at Tata Sons and elevated crude prices kept sentiment cautious.
As of 3:32 pm IST, BSE Sensex closed at 78,079.96, up 113.61 points or 0.15%. The NSE Nifty 50 settled at 24,395.85, down 40.10 points or 0.16%.
The session was choppy. Nifty opened at 24,431.60, touched a high of 24,431.60 and a low of 24,311.40. Sensex traded between 77,665.89 and 78,119.39. Previous close for Sensex was 77,966.35.
Seven of the 16 major sectors ended lower, with heavyweight IT and Tata Group names leading the drag.
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OIL VS INFLATION: Relief At The Checkout, Worry At The Pump
CPI hits 8-year low, but crude at $89 caps optimism
Oil hovered around $89 a barrel after new attacks on shipping in the Middle East raised fears that the Iran conflict won’t cool anytime soon. For India, the world’s third-largest oil importer, that raised concerns on margins, inflation and the trade deficit.
