Market weekly wrap-up: Sensex, Nifty decline for 8th straight week amid global uncertainties

The domestic equity benchmark indices declined for the eighth consecutive week amid the elevated crude oil prices sustained FII outflows higher global bond yields and the geopolitical uncertainties that weighed on investor sentimentIn the shortened trading week the benchmark indices corrected sharply The Nifty ended down by 310 percent while the Sensex fell nearly 2000 points Amol Athawale VP Technical Research Kotak Securities said The market consistently faced selling pressure at higher levels during the week he addedDuring the week the Sensex lost 198604 points or 269 per cent to end at 7190970 The Nifty slipped 71855 points or 310 per cent to settle at 2242195The benchmark indices declined on all the four trading days during the truncated week The stock market was closed on October 2 on account of Mahatma Gandhi JayantiOn Thursday the 30share BSE Sensex slumped 57059 points or 079 per cent to settle at 7190970 The 50share NSE Nifty tanked 19850 points or 088 per cent to end at 2242195Indian equities had a difficult holidayshortened week which saw benchmarks slip below a key psychological level as a worsening global backdrop overwhelmed domestic support With the crude prices surging US Treasury yields neared twodecade highs on expectations of further Fed US Federal Reserve tightening narrowing the IndiaUS yield differential and weakening the rupee Vinod Nair Head of Research Geojit Investments saidSector wise performanceAmong the sectors almost all the sectors declined during the week Consumer durables PSU banks realty and metals autos were all under pressure IT stocks were the only gainers with the sectoral index rising 21 per cent benefiting from rupee depreciationThe consumer and auto indices lost the most consumer down 615 per cent auto down by 585 per cent Athawale saidFII outflowsForeign Institutional Investors FIIs were the net sellers on Thursday offloading equities worth Rs 948422 crore as per the exchange data During the week FIIs sold equities worth Rs 34970 crore in the Indian equity marketDomestic Institutional Investors DIIs were net buyers during the week purchasing equities worth Rs 33460 crore On Thursday they were net purchasers buying equities worth Rs 1004184 croreFIIs stepped up selling through the week while steady DII buying absorbed much of the outflow cushioning but not arresting the decline Nair saidMarket outlookThe RBI policy and the GST Council meeting on GST 20 process reforms on October 7 and the US jobs report and the trajectory of Treasury yields remain the key drivers said Siddhartha Khemka Head of Research Wealth Management Motilal Oswal Financial ServicesAccording to Pabitro Mukherjee Deputy Vice PresidentResearch Bajaj Broking market participants will also closely track Brent crude oil prices and developments surrounding USIran geopolitical tensions which remain key drivers of global risk sentiment and foreign institutional flowsWith multiple macro and corporate triggers lined up volatility and institutional flows are likely to remain closely linked to developments in crude oil interest rates inflation and geopolitical risks he saidThe Q2 FY27 earnings season is set to begin with Tata Consultancy Services TCS on October 8With Q2 earnings expected to be softer than Q1 sentiment is likely to remain fragile Nair said