Geopolitical Concerns Weigh on Indian Market Performance

Indian Stock Market Extends Weekly Losses Amid Geopolitical Tensions and FII Outflows​

Benchmarks End Fourth Straight Week in Red Despite Late Recovery​

Mumbai, March 21: Indian equity markets closed lower for the fourth consecutive week, weighed down by persistent selling pressure and rising geopolitical tensions in West Asia.

The Nifty declined 0.16 percent for the week but managed to recover on the final trading day, gaining 0.49 percent to settle at 23,114. The Sensex also ended Friday’s session higher by 324 points, or 0.44 percent, at 74,532. However, on a weekly basis, the index slipped marginally by 0.04 percent.

Early Momentum Fades After Flat Start​

Both benchmark indices began the week on a subdued note before witnessing a brief phase of upward momentum, largely supported by buying interest in metal stocks. However, the gains could not be sustained as broader market pressures resurfaced.

Crude Oil Above $100 Raises Inflation Concerns​

Elevated crude oil prices, which remained above $100 per barrel, continued to weigh on investor sentiment. The surge in oil prices has heightened concerns around inflation and India’s trade deficit, adding to the cautious market outlook.

Sectoral Trends: IT, PSU Banks and Metals Outperform​

Among sectors, Nifty IT and PSU Banks emerged as the top performers during the week. Metal stocks also saw strong traction, with the Nifty Metal index rising over 2 percent, supported by positive brokerage commentary and an improved demand outlook.

Broader Markets Show Mixed Trend​

The broader market indices displayed a mixed performance compared to the benchmarks. The Nifty Midcap100 posted a marginal gain of 0.06 percent, while the Nifty Smallcap100 declined by 1.11 percent, indicating selective participation across segments.

Rupee Hits Record Low Against US Dollar​

The Indian rupee weakened further during the week, breaching the 93 mark to touch a record low of Rs 93.49 against the US dollar. The decline was attributed to strong dollar demand, sustained foreign institutional investor outflows, and broader global currency pressures.

Persistent FII Selling Weighs on Sentiment​

Market sentiment remained under pressure due to continued foreign investor selling. Over the past 13 sessions, foreign institutional investors have recorded cumulative outflows of Rs 81,263 crore, adding to the downward bias in equities.

Key Levels to Watch for Nifty and Bank Nifty​

Analysts indicate that the immediate resistance for Nifty is placed at 23,850, followed by 24,000 and 24,150. On the downside, key support levels are seen at 22,950 and 22,700.

The index has corrected nearly 13 percent from its all-time high, reflecting a significant phase of market consolidation.

For Bank Nifty, the 53,000 to 52,000 range is seen as immediate support, while resistance is expected in the 54,000 to 55,000 zone, according to market participants.