Mumbai, April 5 – Indian stock markets ended their sixth consecutive week in the red, with benchmark indices slipping by nearly 0.5 per cent amid heightened volatility triggered by a mix of global uncertainties and domestic concerns.
Investors are now bracing for another eventful week, where the Reserve Bank of India's policy decision, escalating geopolitical tensions, and surging crude oil prices are expected to dictate market direction.
The week, shortened due to holidays, began on a weak note, as rising tensions between the United States and Iran, coupled with a sharp spike in crude oil prices, dampened investor sentiment and led to broad-based selling.
However, markets staged a recovery in the middle of the week as fears of an immediate escalation eased and oil prices showed some signs of cooling.
Despite the rebound, volatility remained elevated due to inconsistent global cues, persistent foreign institutional investor outflows, concerns over inflation, and a weakening rupee.
By the end of the week, the Nifty closed at 22,713.10, while the Sensex closed at 73,319.55.
Commenting on the technical outlook of the Nifty, experts said that from a technical standpoint, the 22,150-21,900 zone is likely to act as a key support area.
"On the upside, resistance is seen in the 23,000-23,500 range. The Relative Strength Index (RSI) on the weekly timeframe stands at 27.88," an analyst stated.
Looking ahead, all eyes will be on the upcoming monetary policy decision by the Reserve Bank of India.
The Monetary Policy Committee (MPC) is scheduled to meet from April 6 to April 8 for its first session of FY27.
Geopolitical developments will also remain a key factor. The ongoing conflict between the United States and Iran appears to be intensifying, with reports of military escalation and strong warnings issued by Donald Trump.
Any further deterioration in the situation could significantly impact global risk sentiment and trigger fresh volatility in equities.
Crude oil prices, already on a sharp upward trajectory, will be another crucial factor. Brent crude has surged to around $109 per barrel following disruptions in the Strait of Hormuz, a vital artery for global energy supplies.
The spike, which marks a more than 50 per cent increase since late February, has raised concerns about inflationary pressures and input costs for Indian companies.
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The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
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