25 July,2026 03:10 PM IST | Mumbai | mid-day online correspondent
Representational Image. File pic.
The Indian equity benchmarks declined during the week over the surging crude prices and lower than expected quarterly earnings of certain companies for Q1FY27. The market indices extended their losses for the fifth consecutive day as the escalating geopolitical tensions in West Asia that fuelled concerns over supply shortage continued to dampen investor sentiment.
"In the last week, the benchmark indices corrected sharply. The Nifty ended 2.33 percent lower, while the Sensex was down by 2,091 points. Among sectors, almost all the major sectoral indices witnessed profit booking at higher levels, but the private banks and realty indices lost the most, shedding over 4.5 percent whereas FMCG index was the top gainer, rallied nearly 1 percent," Amol Athawale, VP Technical Research, Kotak Securities said.
The 50-share Nifty ended the week at 23,767.45, down 566.85 points from 24,334.30 last Friday. The 30-share Sensex lost 2.68 per cent during the week from 78,151.45 on July 17, 2026.
HDFC Bank shares lost for the fifth consecutive day on Friday, and the stocks tumbled nearly 9.5 per cent this week to settle at Rs 742.60 on Friday, from Rs 819.65 the previous week. The country's largest private lender had reported a decline in its net interest margin for the first quarter of the financial year 2027. Net interest margin is a key financial metric to understand a bank's profitability. Similarly, Axis Bank shares too fell 7.6 per cent during the week.
"Inflationary fears intensified as the escalation of the West Asia conflict and the blockade at the Red Sea helped crude to cross the USD 100 per barrel mark. Market expectations for a September rate hike have firmed up with both US and domestic yields edging higher during the week. For domestic investors, concerns were further exacerbated by the return of US tariff-related uncertainties, which have cast a shadow over the outlook for export-oriented sectors," Vinod Nair, Head of Research, Geojit Investments said.
"If we are to go by the July PMI, it is signalling towards a moderating business activity and softer economic sentiment. Collectively, these factors dampened domestic investor sentiment, leading to a steady declines through the week, with large-cap stocks bearing the brunt of the selling pressure and underperforming the broader market," he added.
India's HSBC Flash Composite PMI eased to 54.3 in July from 57.1 in June, marking the slowest pace of private sector expansion in over four years, noted Siddhartha Khemka Head of Research, Wealth Management, Motilal Oswal Financial Services. The HSBC Purchasing Manager's Index indicates the economic health of manufacturing and services sector.
"Looking ahead, investors will monitor the US Federal Reserve's policy decision, Federal Reserve Chair Jerome Powell's commentary and the Bank of Japan's policy meeting for further cues on the global interest rate outlook," Khemka said.
This is likely to impact the foreign institutional investors, who have offloaded equity shares worth Rs 7,180 crore amid the escalating US-Iran conflict, as per an IANS report.
"While the earnings momentum is expected to improve meaningfully only from H2FY27, that recovery now remains contingent on crude prices stabilising and tensions in West Asia easing. Until oil prices moderate and geopolitical risks subside, India's market re-rating is likely to be gradual rather than sharp, reinforcing the case for staying invested and accumulating quality businesses rather than remaining on the sidelines," Nair said.
According to news agency PTI, Brent crude, the global oil benchmark, dropped 3.66 per cent to USD 96.98 per barrel on Friday, after surpassing USD 100 per barrel in the previous session.
(With inputs from agencies)
