Mumbai, April 25: The Indian stock market experienced a significant decline this week due to rising tensions in the Middle East, a sharp increase in crude oil prices, and heavy selling in IT shares.
The benchmark indices closed lower, with the Sensex down by 2.3 percent and the Nifty50 declining by 1.9 percent on a weekly basis. However, midcap and smallcap stocks saw relatively minor declines, with the BSE Midcap Index falling by 0.6 percent and the Smallcap Index by 0.2 percent.
In terms of liquidity, foreign institutional investors (FIIs) sold shares worth ₹1,369 crore this week, while domestic institutional investors (DIIs) purchased shares worth ₹9,782 crore.
The IT sector was the most affected, witnessing a nearly 10 percent drop, primarily due to expectations of weak quarterly results from companies, although Infosys and Tata Consultancy Services reported satisfactory results.
Conversely, the FMCG sector performed well, showing double-digit growth, while the BFSI sector remained stable with good asset quality.
Analysts noted that the market experienced volatility throughout the week, driven by uncertainty among investors due to the escalating U.S.-Iran tensions and disruptions in the Strait of Hormuz.
The rise in crude oil prices and political uncertainty led to cautious buying from investors, resulting in a negative trading sentiment. Continuous selling by foreign investors exerted pressure on the market, while buying by domestic investors somewhat mitigated the decline.
Events in West Asia also weighed heavily on the market. Initially, Iran announced the reopening of the Strait of Hormuz, but later reinstated restrictions following U.S. actions, causing crude oil prices to surge by 15 percent to $107 per barrel.
Additionally, U.S. President Donald Trump extended the ceasefire with Iran indefinitely, further increasing uncertainty in the region.
Investors are also closely monitoring the financial results of companies for the fourth quarter of fiscal year 2026, covering January to March.
On the last trading day of the week, the BSE Sensex closed down 999.79 points, or 1.29 percent, at 76,664.21, while the NSE Nifty50 fell by 275.10 points, or 1.14 percent, to 23,897.95.
During the day’s trading, the 30-share Sensex opened at 77,483.80 but dropped by 1,260 points, or 1.6 percent, to reach a low of 76,403.87. The Nifty opened at 24,100.55 and fell by 359 points, or 1.5 percent, to a low of 23,813.65.
Next week, investors will focus on India‘s IIP data for March 2026, as well as PMI data from the U.S., China, and Japan, and U.S. PCE inflation figures. Major central banks, including the Federal Reserve, Bank of England, and European Central Bank, will also announce their policies, which will influence market direction.