12 September,2026 07:05 PM IST | Mumbai | mid-day online correspondent
Representational Image. File pic.
The domestic equity benchmark indices extended losses for the fifth straight week amid a surge in global crude oil prices that hit a four-week high on Friday due to the heightened tensions between US and Iran, and higher bond yield rates.
Analysts also pointed out that the booming activity in the primary markets with nearly 12 mainboard IPOs valued at over Rs 7000 crore during the week diverted the investor sentiment from the secondary market, weighing on the indices.
The benchmark indices corrected sharply and the market breached the 23,800/76,000 crucial support zone, and post-breakdown, selling pressure intensified, according to Amol Athawale, VP Technical Research, Kotak Securities.
During the week, the Sensex tumbled 1,733.67 points or 2.27 per cent, while the Nifty slipped 499.60 points or 2.09 per cent. The indices declined on four out of the five days during last week.
"Domestic equities ended the week decidedly lower, extending the corrective trend, as an energy-led inflation narrative dominated sentiment. Crude sustaining above the USD 100 per barrel mark, on continued hostilities and retaliatory action in West Asia, remained the central variable through the week. Compounding the pressure, the fund flow environment turned increasingly challenging as expectations of synchronized monetary tightening gained traction," Vinod Nair, Head of Research, Geojit Investments said.
"Rising global bond yields, together with concerns over a potential unwind of yen-funded carry trades amid expectations of a Bank Of Japan (BOJ) rate hike and a stronger yen, weighed on investor risk appetite and heightened concerns over capital flows into emerging markets. Domestically, rising bond yields and a depreciating rupee weighed on sentiment through the week," he added.
On Friday, the market indices however recovered from their intraday lows to minimise the fall as the crude oil prices eased. The 30-share BSE Sensex dropped 120.83 points or 0.16 per cent to end at 74,781.76, while the 50-share NSE Nifty slipped 79.70 points or 0.34 per cent to settle at 23,398.10.
"Midcap 100 and Smallcap 100 declined 0.3 per cent and 0.6 per cent, respectively. Private Banks outperformed gaining 0.5 per cent, while Realty was among the key laggards, with the Nifty Realty index declining sharply and hitting a more than two-month low, led by Godrej Properties and Lodha, amid the broader risk-off sentiment and rising bond yields," Siddhartha Khemka Head of Research, Wealth Management, Motilal Oswal Financial Services said.
Realty and IT sectors witnessed the highest selling pressure, declining around 5-7 per cent during the week.
Foreign Institutional Investors (FIIs) ended the week as net sellers for the fourth consecutive week, offloading Rs 1,795 crore. Domestic Institutional Investors (DIIs) stayed on the buy side, extending their streak with accumulation of Rs 6,419 crore, said Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking said.
According to Khemka, investors will focus next week on India's August CPI and WPI inflation, the US Fed policy decision next week, US retail sales and industrial production, with crude prices, the rupee and global yields remaining key market monitorable.
In the primary market, the National Stock Exchange's (NSE) Rs 22,569 crore-IPO is going to hit the market on September 17 with a price band of Rs 1,700-1,785 per share for its issue.
"The coming week brings a dense macro calendar with key releases like the US and domestic inflation prints and policy decisions from both the Fed and the BoJ, which, alongside the trajectory of crude, will set near-term direction. Elevated energy prices sustained foreign outflows and geopolitical uncertainty will keep volatility high. However, resilient domestic fundamentals and strong institutional support could continue to attract buying at lower levels and contain the downside," Nair said.
