29 August,2026 03:18 PM IST | Mumbai | mid-day online correspondent
Representational Image. File pic.
The domestic equity benchmark indices extended their slump for the third straight week amid elevated crude oil prices and global uncertainties.
On Friday, led by IT stocks, the 30-share BSE Sensex surged 330.92 points, or 0.43 per cent, to settle at 77,264.51, while the 50-share NSE Nifty gained 84.80 points, or 0.35 per cent, to end at 24,175.65.
During the week, the Sensex lost 276.32 points or 0.36 percent, while the Nifty slipped 76.35 points or 0.31 per cent. The benchmark indices gained on Tuesday and Friday, while declining on the other days.
"Benchmark indices extended decline for the third week in a row as higher crude oil prices and continued geopolitical concerns continue to weigh on investor sentiment, with limited directional triggers, investors remained focused on sectoral rotation and stock-specific opportunities," Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking said.
"Nifty started the week on a positive note and formed an intra-week high of 24,378 on Wednesday session. However, it gave up its gains in the second half of the week to form an intra-week low of 24,076. Nifty closed the week off the low at 24,175 levels down by 0.3 per cent," he added.
On Wednesday, the benchmark market indices reversed their gains, as the Sensex slipped 183.15 points to settle at 77,472.94, while the Nifty declined 126.80 points to end at 24,207.75.
"Indian equities demonstrated notable resilience amid a volatile trading week, with the broader market remaining well-supported despite a measured increase in domestic bond yields. US sanctions on Iran fell short of market expectations, triggering a sharp slide in crude and easing imported-inflation worries. This relief on the energy front, coupled with a firmer rupee and softer US yields, cushioned sentiment against lingering West Asia tensions," Vinod Nair, Head of Research, Geojit Investments said.
"Large-cap participation stayed selective, while the mid- and small-cap indices bucked the weakness to close higher, underpinned by better earnings visibility and their largely domestic-facing character. With the Q1FY27 earnings season concluding on a healthy note, focus is gradually shifting toward the sustainability of earnings growth against an evolving global macro backdrop," he added.
Both Nifty Midcap and Nifty small cap closed with gains of 0.5 per cent each, though Bank Nifty traded in a range and closed the week down by 0.5 per cent.
"Sectorally, metals led on firm commodity prices and improving realisation prospects, while IT outperformed after Nvidia's strong results and upbeat guidance reinforced optimism around sustained AI-related investments which could benefit firms involved in enterprise AI deployment and workflow integration. Conversely, softer crude weighed on upstream producers while FMCG stocks retreated amid input-cost concerns," Nair added.
Foreign Institutional Investors (FIIs) continued to be net sellers for the second consecutive week, offloading Rs 2,060 crore worth of Indian equities, while Domestic Institutional Investors (DIIs) extended their buying streak with net purchases of Rs 19,309 crore, according to Mukherjee.
"In the coming month, investors will closely monitor movements in Brent crude prices and developments surrounding US-Iran tensions. Escalating US-Canada trade tensions could further add to market uncertainty and keep investors cautious. Meanwhile, elevated US bond yields remain a key concern, with markets awaiting upcoming inflation data ahead of the Federal Reserve's policy meeting in mid-September. On the domestic front, Q1 GDP growth and inflation data will remain the key economic indicators to watch for Institutional flows," Mukherjee said.
Brent crude, the global oil benchmark traded at USD 88.10 or 0.47 per cent lower.
Investors will closely track the US Federal Reserve Chairman Kevin Warsh's commentary, US jobs data, business-sentiment readings and the domestic GDP print for further direction on growth and the global rate trajectory, Nair said.
