05 April,2026 01:34 PM IST | Mumbai | mid-day online correspondent
Indian markets slip for sixth week amid global tensions. Representational Image
Indian markets began the holiday-shortened week on a weak note as global and domestic factors combined to dampen investor sentiment.
Rising tensions between the United States and Iran created uncertainty, while Brent crude oil prices surged sharply due to disruptions in the Strait of Hormuz. This led to broad-based selling across sectors, pulling benchmark indices down, reported IANS.
Despite the initial slump, markets staged a recovery midweek as fears of immediate geopolitical escalation eased and oil prices showed signs of stabilising. Investors took the opportunity to buy stocks at lower levels, providing some respite to indices. However, this recovery remained fragile, with persistent volatility preventing a strong rally.
The markets continued to experience swings due to a mix of domestic and global factors. Foreign institutional investors (FIIs) continued to pull out funds, adding pressure on the indices. A weakening rupee, concerns over inflation and inconsistent global cues also contributed to uncertainty. By the end of the week, the Nifty settled at 22,713.10, while the Sensex closed at 73,319.55, reported the news agency.
Technical analysts highlighted that the 22,150 - 21,900 zone is a key support level for Nifty, while resistance is expected between 23,000 and 23,500. The Relative Strength Index (RSI) on the weekly chart stands at 27.88, indicating the market remains oversold and vulnerable to sharp movements.
The Indian stock market continues to navigate a challenging landscape of global tensions, domestic economic concerns, and high crude oil prices. With the RBI policy meeting and ongoing geopolitical developments on the horizon, investors are expected to approach the coming week cautiously.
Investors are now turning attention to the Reserve Bank of India's Monetary Policy Committee (MPC) meeting, scheduled from April 6 to April 8. The decision on interest rates and policy guidance will likely shape market direction in the near term.
Another major factor influencing the market is crude oil prices. Brent crude has surged to around USD 109 per barrel, a more than 50 per cent increase since late February. Higher oil prices raise inflationary pressures and increase input costs for Indian companies, adding to market volatility.
But, why does oil prices matter so much? For India, which imports a large share of its crude oil, these price spikes translate into a higher import bill, inflation risk and pressure on corporate profits. Volatile oil prices also tend to weaken the rupee and increase production costs for many sectors, contributing to broader market weakness.
Geopolitical developments remain a key concern for investors. Reports of military escalation and warnings from US leadership have kept global risk sentiment tense. If geopolitical tensions ease or oil prices retreat, markets could stabilise. On the other hand, any escalation in conflict or continuing oil volatility could prolong the downtrend and sustain pressure on indices. Investors are watching the RBI's policy stance and global developments closely to gauge the next phase of market direction.
(With IANS Inputs)
