Nifty, Sensex post mild weekly loss over escalating West Asia tensions

Mumbai, July 11 (IANS) After rallying for four consecutive weeks, the Indian equity benchmarks posted mild weekly loss, as escalating tensions in West Asia sent crude prices higher.

Nifty lost 0.26 per cent during the week and edged up 1.02 per cent on the last trading day to reach 24,206. At close, Sensex was up 827 points, or 1.08 per cent, at 77,569. It lost 0.25 per cent during the week.

Indian equities experienced a volatile week, with early optimism giving way to a sharp bout of risk aversion due to geopolitical tensions.

Investor sentiment weakened after fresh military strikes and concerns over the progress of the US–Iran peace negotiations triggered a risk-off mood across global markets.

“However, the sell-off proved to be short-lived, as investor sentiment improved markedly following encouraging Q1 FY27 business updates from the banking and IT sectors, which provided a constructive backdrop for the upcoming earnings season,” an analyst said.

Indian equities gradually recovered in the latter half of the week as crude oil prices declined from nearly $76 per barrel to the $71–72 range, global technology stocks rebounded, and optimism surrounding the ongoing diplomatic discussions helped improve overall market sentiment.

Sustained earnings outperformance in Q1FY27 is likely to reinforce confidence in the FY27 corporate earnings outlook which could help catalyse a recovery in FII inflows, they said.

Foreign Institutional Investors (FIIs) remained net buyers through most of the trading sessions, ending the week with net inflows of approximately Rs 4,670 crore.

On the sectoral front, real estate, consumer durables, and IT outperformed, whereas media, FMCG and chemicals lagged. Mid and small-cap segments outperformed the broader market, supported by gains in realty, consumer durables, and metal stocks.

Broad market indices showed divergence with benchmark indices, as Nifty Midcap100 added 1.36 per cent, while Nifty Smallcap100 rallied 1.26 per cent during the week.

Immediate resistance levels for Nifty are placed at the 24,300 level and the 24,100 level is expected to provide immediate support, followed by the 24,000 level.

Also, immediate support for Bank Nifty is placed in the 57,800–57,700 zone, while resistance is seen at 58,200–58,300 zone.

Investors remain keen on Q1FY27 earnings and the domestic inflation print, US core inflation data and commentary from Federal Reserve officials.

“Despite the hawkish tone of the recent FOMC meeting, easing inflationary pressures and slowing growth across the US, the EU, and China have strengthened expectations of a more accommodative monetary policy stance,” a market participant said.

—IANS

aar/na