The Indian equity benchmarks posted notable losses for the sixth consecutive week as foreign institutional investor (FII) selling continued and concerns about a prolonged high‑rate environment kept investors cautious.
MUMBAI — The Indian equity benchmarks posted notable losses for the sixth consecutive week as foreign institutional investor (FII) selling continued and concerns about a prolonged high‑rate environment kept investors cautious.
Nifty declined 0.22 per cent during the week and added 0.33 per cent on the last trading day to reach 23,346. At close, Sensex was down 19 points, or 0.03 per cent, at 74,294. It lost 0.65 per cent during the week.
After a weak start, Indian equities staged a partial recovery later, supported by a retreat in crude oil prices from recent highs.
"With the US and Japanese policy decisions broadly in line with expectations, easing energy inflation concerns helped temper the inflation premium embedded in sovereign yields, leading to a moderation in yields in the latter part of the week and some relief for equity valuations," an analyst said.
However, the accompanying policy guidance continued to signal a broader tightening bias across major economies, making a prolonged high-rate environment likely.
Against this backdrop, persistent FII selling sustained pressure on the rupee and capped the market rebound, leaving domestic equities lower for the week, he added.
Mid and small-cap stocks outperformed large caps as investors rotated toward domestically oriented businesses with stronger earnings visibility, healthier order books and sound balance sheets.
Sectorally, healthcare and FMCG attracted buying on their defensive earnings profiles and domestic demand linkage.
Realty and metals remained among the stronger sectors on Friday, while IT continued to face pressure, with the Nifty IT index declining around 1 per cent.
Mid and small-cap IT stocks and consumer durables declined this week on concerns over global technology spending and discretionary demand in a higher-for-longer interest rate environment and persistent pricing pressure, respectively.
Meanwhile, the 23,000–23,100 zone remains the immediate support area for Nifty, while 23,400–23,600 region remains the immediate resistance zone.
Market participants forecast that domestic credit growth and PMI readings will provide a gauge of underlying activity in the week ahead.
US initial jobless claims and commentary from Federal Reserve officials will shape expectations on the rate trajectory and global liquidity conditions.