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Nifty 50 Suffers Sharpest Weekly Fall in Six Years
India’s main stock-market index, the Nifty 50, has been falling for seven weeks in a row.
It dropped sharply on Thursday, although it recovered some ground afterward.
Investors are worried because oil has become much more expensive.
Higher oil prices can make it costlier for businesses and consumers.
Interest rates and bond yields are also high around the world, which can make investors less willing to buy shares.
Foreign investors have continued selling Indian stocks, adding to the pressure.
Financial companies were hurt by concerns about possible limits on insurance commissions.
Some analysts still see hope because Indian economic growth and local investment remain strong.
They believe carefully chosen stocks could become attractive if prices continue to improve.
The Nifty 50 extended its weekly losing streak to seven weeks, its longest sustained decline since 2020.
The index fell 1.64% on Thursday, its biggest one-day decline in 10 weeks, and could not erase weekly losses during Friday’s recovery.
Surging crude prices, elevated global bond yields, foreign selling and concerns over insurance commission caps weighed on Indian equities.
Brent crude traded near $105 a barrel, while the US 10-year Treasury yield remained around 5.2%, increasing pressure on global financial conditions.
Analysts said the market remains volatile but identified support near 23,000 and selective opportunities as valuations improve and domestic growth stays resilient.
- Who
- Indian equity investors, foreign portfolio investors, mutual funds and market analysts including Ajit Mishra, Vinod Nair and Hariselvan Radhakrishnan.
- What
- The Nifty 50 suffered a sharp weekly decline and extended its losing streak to seven weeks amid pressure from crude prices, global yields and continued foreign selling.
- Where
- India’s stock market, including the Nifty 50 on Dalal Street.
- When
- During the reported week; the Nifty 50 fell 1.64% on Thursday and partially recovered in the following session.
- Why
- Investors were responding to elevated crude prices, rising global yields, foreign selling, concerns about insurance commission caps and possible further monetary tightening.
Bearish risks
Selective optimism
Near-term market direction
Bearish risks
Elevated crude prices, global yields, persistent foreign selling and possible monetary tightening could keep the trend weak and volatility high.
Selective optimism
Oversold heavyweights, strong domestic liquidity and resilient domestic growth could limit further downside.
Valuations and buying
Bearish risks
Investors may continue liquidating stocks while global macroeconomic pressures remain elevated.
Selective optimism
Improving valuations may create selective accumulation opportunities despite external pressures.
Market levels
Bearish risks
A break below the 23,000 support level would indicate additional near-term weakness, according to the levels cited by analysts.
Selective optimism
Holding above the psychologically important 23,000 level would reflect domestic resilience and provide a basis for recovery.
Key facts
- Nifty 50 weekly streak
- Seven consecutive weekly declines.
- Thursday decline
- 1.64%, the index’s biggest one-day fall in 10 weeks.
- Brent crude
- Near $105 a barrel after retreating from a recent peak.
- US 10-year Treasury yield
- Around 5.2%.
- Key support level
- 23,000 on the Nifty 50.
- Immediate resistance
- 23,300–23,350, followed by broader resistance near 23,600.
- Market concerns
- Crude prices, global yields, foreign selling and proposed insurance commission caps.
Quotes
Hariselvan Radhakrishnan
Founder and CEO of HST Wealth
“While elevated oil prices and global yields may continue to temper risk appetite in the near term, improving valuations and resilient domestic growth prospects are encouraging selective accumulation, helping the market absorb external pressures more effectively.”
livemint.com
“The recovery remained measured as investors continued to monitor elevated global yields, crude oil prices, and persistent foreign selling. Besides, oversold positions in heavyweights across sectors provided some support and helped limit further downside.”
livemint.com
Sources
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