Indian Markets End Sixth Week Down Amid Global Uncertainty
Indian markets faced a sixth consecutive week of decline.
Top Summary
- What happened: Indian markets declined for the sixth consecutive week, closing with NIFTY 50 near 22,713 and SENSEX slightly lower.
- Why it matters: Persistent market weakness reflects global uncertainties and continued selling pressure, impacting investor confidence.
- What changes: Short covering drove intraday recovery, but broader macro challenges and geopolitical tensions remain.
- Who is affected: Investors, traders, and businesses dependent on market stability, particularly those in pharma and consumer durables sectors.
Market Overview: Sixth Week of Losses
Indian markets extended their losses for the sixth consecutive week, indicating a struggle to attract sustained buying interest.
NIFTY 50 closed near the 22,713 mark, with the SENSEX also ending the week lower.
Intraday Recovery and Rupee's Role
A sharp intraday recovery occurred in the second half of the week, primarily driven by short covering.
The Indian rupee's recovery from record lows triggered this rebound.
Global Concerns and Crude Oil Surge
Escalating geopolitical tensions in the Middle East caused crude oil prices to surge.
Brent crude crossed the $112 mark, raising concerns for India due to its import dependence.
Sectoral Performance: Mixed Trends
The market showed a mixed sectoral trend.
NIFTY IT (+3.0%) and NIFTY Metal (+2.6%) showed relative strength, while NIFTY Pharma (-3.3%) and NIFTY Consumer Durables (-1.6%) faced pressure.
HDFC Bank's Performance
HDFC Bank reported its Q4 business update, signalling gradual stabilisation post-merger.
Deposits grew 12% year-on-year to 10.6 Lakh crore, and the loan book grew 10% to 30.5 lakh crore.
Technically, the stock is in a bearish phase, having corrected over 25% this year and slipped below its 200-day moving average.
Key Events to Watch
The US inflation print on April 10 is a key event.
The US GDP final reading for Q4 and weekly jobless claims will provide further economic cues.
The Reserve Bank of India's Monetary Policy Committee meeting between April 6–8 will be closely watched for its policy outcome.
Market Breadth and FII Activity
The breadth of the NIFTY50 index weakened, with the percentage of stocks trading above the 50-day moving average slipping to single digits.
Foreign institutional investors (FIIs) sold equities worth ₹1.88 lakh crore in FY26 and continued the trend with outflows of ₹18,262 crore at the start of FY27.
NIFTY50 Outlook
The NIFTY50 index continues to trade below its key moving averages, with high volatility indicated by an India VIX above 25.
23,000 remains a crucial resistance zone, while 22,200 to 22,000 acts as immediate support.
What to Watch Next
Investors should closely monitor the US inflation data and the RBI's policy outcome for further market direction. Geopolitical developments and crude oil price movements will also remain critical factors influencing market sentiment.