A perfect storm of Middle East geopolitical risks, surging crude prices, and FII divestments led to a 2.9 percent weekly erosion in Sensex and Nifty. The blue-chip index closed at 78,918.90 (down from 81,287.19), while Nifty ended at 24,450.45 (from 25,178.65), heightening market anxieties.
FIIs yanked out over ₹23,000 crore, prioritizing safety as Brent crude approached $86/barrel on supply disruption fears. DIIs played stabilizer, injecting funds to mitigate freefall.
Market breadth weakened across the board: Midcap and smallcap fell 3 percent. Realty plunged 4.9 percent, oil & gas 4.8 percent, bankex 4.6 percent, auto 3.9 percent, and durables 3.1 percent. Capital goods rose marginally by 0.2 percent, and defense stocks gained 3 percent amid wariness over global flashpoints.
Volatility surged with India VIX up over 11 percent, underscoring risk aversion. Per analysts, FII actions reflect de-risking strategies, countered by resilient domestic investment via DIIs and SIPs. Nifty at 24,450 near its 200-day average tests support, but underlying strengths suggest this dip is buyable for long-term players.