India's stock market fell 0.16% last week, with the SENSEX down 2.27% on a weekly basis for its 5th consecutive weekly decline. As tensions in the Middle East intensified in the latter half of the week, crude oil prices rose above $100, prompting investors to adopt a more cautious stance.
In India's stock market last week (7–11), the SENSEX closed at 74,781.76 on 11, down 0.16% from the previous day and 2.27% from the previous week, marking its 5th consecutive weekly decline. The market began falling on 7, declined for 3 straight days through 9, rebounded on 10 and fell again on 11.
In the first half of the week, renewed tensions over Iran and the Strait of Hormuz, along with concerns about monetary tightening due to inflation risks, triggered selling. IT, metals, public-sector bank and media-related stocks led the decline. Crude oil prices then surged following attacks by Yemen's Houthi movement, making higher oil prices a source of concern for the market.
In the latter half of the week, crude oil prices remained above $100 as tensions in the Middle East escalated. Selling dominated, particularly in IT and real estate stocks, while fluctuations in bond yields and currencies prompted broader caution. At times, however, dip-buying spread, with bank and electric power stocks attracting stronger demand.
At the weekend, selling dominated the Indian market under the influence of declines in overseas equities. Inflation concerns stemming from surging crude prices and rising global bond yields were the backdrop. IT, consumer staples and bank stocks, however, limited their declines. This week, attention is expected to focus on geopolitical risks, oil market developments and the release of key economic indicators.