Markets Suffer Fifth Consecutive Weekly Decline Amid US-Iran Tensions, Prolonging Eight-Month Losing Streak

Market Update: Indian Indices Decline for Fifth Straight Week

Key Figures:

• Nifty 50: 22,819.60 (-2.09%)
• BSE Sensex: 73,583.22 (-2.25%)
• Volatility Index: 27.09 (highest since June 2024)
• Weekly Loss: Nifty 50 and Sensex: approximately 1.3%

The BSE Sensex and Nifty 50 declined for a fifth consecutive week, with their longest losing streak in about eight months. This decline was attributed to fraught Middle East ceasefire negotiations and elevated crude oil prices, which intensified foreign outflows and battered the rupee.

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Sectoral Performance:

• Energy Stocks: fell 1.9% for the week
• Metal Stocks: fell 2.2% for the week
• Bank Nifty: slipped more than 2%
• Nifty IT: outperformed, rising over 1% this week
• Nifty PSU Bank and Defence: worst-performing sectoral indices, down nearly 4% each

Top Losers:

• Adani Enterprises
• Coal India
• Bharat Electronics
• Trent
• Shriram Finance (top Nifty losers)
• IDBIBank
• Bharat Dynamics
• Mazagon Dock
• Torrent Power (top Midcap losers)

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Rupee and Foreign Outflows:

• The rupee settled at a record low of 94.8125 per dollar
• Record monthly foreign outflows worth Rs 1.1 lakh crore

Technical Analysis:

• The Nifty continues to hover near crucial support levels, indicating sustained pressure despite entering oversold territory
• Immediate support is placed around 22,500, and a decisive break below this level could trigger further downside towards 22,000
• 23,000 is likely to act as an immediate hurdle, followed by a stronger resistance near the 23,500 zone in case of any recovery

Market Outlook:

• Volatility is expected to remain elevated due to prevailing geopolitical uncertainty and the scheduled expiry of March derivatives contracts
• Participants are advised to maintain a cautious approach, avoid aggressive positioning, and focus on disciplined risk management while adopting a selective, stock-specific trading strategy.