Market Indices Slide After US-Iran Deal Delay; Brent Crude Spike Dampens Investor Sentiment
India's equity markets closed in the red for a third consecutive week as persistent geopolitical uncertainty and a sharp rise in crude oil prices weighed heavily on Dalal Street. Both major benchmark indices registered losses, continuing a trend of subdued trading despite ongoing earnings season activity.Equity Markets End on a Weak Note
The Nifty declined by 29.85 points or 0.1%, concluding at 24,366. Similarly, the BSE Sensex fell 70.71 points or 0.1%, settling at 78,009.25. The indices recorded losses of 0.8% and 0.6% for the week respectively.While the benchmark indices saw a slight decline, the performance across micro-cap categories showed divergence. The Nifty Midcap 150 managed to gain 0.2% for the week, whereas the Nifty Small-cap 250 closed down 0.4%. Of the total 4,502 stocks traded on Friday, 2,393 declined while 1,896 advanced.
Geopolitical Uncertainty and Oil Price Surge Weighed Heavily
The continuity of losses was attributed to the indefinite deferral of the anticipated US-Iran deal, which had been widely expected over the preceding weekend. This geopolitical uncertainty coincided with an upswing in crude oil prices, adding significant pressure to Indian equities.Brent crude oil October futures remained elevated through the week, trading above $88 a barrel on Friday evening. This marked a notable increase from its close of $83.5 a barrel last Friday.
Technical Outlook: Nifty Holds Key Range Amid Earnings Rally
Technical analysts suggest that the market is currently holding near a critical confluence zone formed by the 100-day and 200-day Exponential Moving Averages (EMA). Immediate support for Nifty lies in the 24,130 to 24,000 spot range. Resistance has been noted at the 24,620 to 24,700 levels.A decisive breakout above the 24,700 mark is required to trigger a sustainable rally toward higher targets such as 24,850 and beyond. Conversely, a breach below 24,000, although less likely, could drag the index down into the 23,800 to 23,600 range.
Motilal Oswal Financial Services noted that while Nifty 50 earnings growth has been steady, the mid- and small-caps have delivered stronger growth and are expected to be in a better position going forward. Overall, earnings breadth within the broader market has shown improvement.
Global Flows and Portfolio Activity
In terms of investment flows, foreign portfolio investors contributed positively, netting purchases worth ₹508 crore. Domestic institutions also acted as buyers, injecting ₹356 crore into the markets.Globally, Asian markets showed mixed results. Japan gained 0.6% and South Korea rose 2.4%, while China closed flat. Hong Kong fell 1.1% and Taiwan dropped 0.5%. The pan-European Stoxx 600 was reported as flat at the close of trading.
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