Geopolitical tensions weigh markets but Nifty ends week in green
Geopolitical tensions weigh markets but Nifty ends week in green
Geopolitical tensions between the US and Iran weigh on Indian shares, but a drop in oil prices helps the Nifty end the week higher.
Mumbai: Indian equities ended the week with cautious moves as renewed US-Iran hostilities weighed on sentiment. The Nifty 50 slipped 0.6% to 24,176.15 and the Sensex fell 0.7% to 77,328.19, punctuating a week of mixed moves as investors waited for clarity on geopolitical risks and domestic earnings. Nifty midcap 150 declined 0.14% while Nifty smallcap 250 rose 0.2% for the day; over the week these midcap and small-cap indices advanced 3.5% and 4.2%, respectively.
Sectoral action was mixed. The Nifty PSU Bank index dropped over 3%, led by a steep 6.7% drop in State Bank of India after weak earnings, while Bank Nifty fell 1.3%. In contrast, the Nifty IT index rose about 1.2%. Global markets remained subdued as Brent crude edged up to $100.30 a barrel after a week of declines, though it was still down about 7% over the week. Asian shares broadly softened, with Hong Kong and Taiwan lower.
Analysts cautioned that while there are hopes for a respite in tensions, higher input costs and elevated commodities could temper earnings in the coming quarters. The military confrontation between the US and Iran persists even as talks continue, emphasizing the risk of tighter margins if oil and other inputs stay elevated.
Looking ahead, traders say the Nifty remains near a breakout zone but is short on fresh triggers, trading within a narrow band of roughly 23,800 to 24,600 for the past several weeks. Investors will be watching for cues from global policymakers and domestic corporate results to decide the next course.
