Markets end week lower amid global uncertainties, profit booking

Indian equity benchmarks ended the week in negative territory, with the Sensex and Nifty declining amid geopolitical tensions, profit booking and concerns over growth forecasts. Analysts expect range-bound trading to continue as investors await clarity on inflation, growth and global developments.

Mumbai: The Indian equity benchmarks posted notable losses during the week as domestic policy measures were mildly offset by persistent external uncertainties.

Nifty lost 0.77 per cent during the week and dipped 0.21 per cent on the last trading day to reach 23,366. At close, Sensex was down 116 points, or 0.16 per cent, at 74,243. It declined 0.71 per cent during the week.

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Geopolitical tensions in West Asia and their influence on crude prices continued to weigh on investor sentiment, although some moderation in oil prices provided intermittent relief.

“Indian equities traded in a range-bound manner with a mild negative bias, witnessing a modest recovery toward the end of the week,” an analyst said.

While supportive liquidity measures and currency stability in RBI MPC aided confidence, the downward revision in growth forecasts tempered optimism and triggered selective profit booking.

The key positive steps were to ease access for global investors and reduce tax-related frictions in bond markets and to support capital inflows.

The rupee strengthened against the US dollar, slipping below the Rs 95 mark, as investors welcomed the central bank’s efforts to attract foreign capital and support currency stability.

Overall, sentiment remained cautious but stable, supported by domestic fundamentals despite external headwinds.

“Investor focus will shift to the sustainability of RBI’s supportive stance, evolving inflation trends, and the trajectory of bond yields,” market participants said.

“With earnings season behind, range‑bound movement is likely to continue as investors await greater clarity on growth momentum and external stability before taking directional positions,” they said.

Broad market indices showed divergence with benchmark indices, as Nifty Midcap100 posted sharp losses down 1.57 per cent, while Nifty Smallcap100 only edged down 0.16 per cent during the week.

Nifty 50 is expected to see the 23,450–23,550 region as a strong resistance zone and the 23,250 region remains a crucial support area, market participants said.

In Bank Nifty, immediate resistance is placed around the 54,800–55,000 zone and the 54,000–53,800 zone continues to act as an immediate support zone.

Investors remain keen on progress in monsoon advancement and its implications for rural demand. On the external front, geopolitical developments and crude price movements remain critical, while updates on the India–US trade discussions may provide incremental triggers.