Nifty, Sensex dip nearly 0.75 pc this week amid geopolitical tensions

MUMBAI: The Indian equity benchmarks closed in the red this week, as persistent selling from the foreign institutional investors (FIIs) and higher crude prices weighed on market sentiment.

Nifty lost 0.73 per cent during the week and dipped 0.74 per cent on the last trading day to reach 23,997. At close, the Sensex was down 582 points or 0.75 percent at 76,913. It dropped 0.97 per cent during the week.

"Investor sentiment remained cautious as the double blockade in the Strait of Hormuz continued to weigh on global markets, without meaningful progress in negotiations," an analyst said.

Oil prices peaked at $126 per barrel for the first time in four years, intensifying inflationary concerns and raising the risk of fuel price hikes. The sharp rise in crude prices weighed on the Indian rupee and revived worries about capital outflows and widening deficits, due to the country's heavy reliance on oil imports.

On the sectoral front, most indices traded in red. Major laggards included Nifty Metal, PSU Banks, Realty, and FMCG. Nifty IT and Pharma remained resilient.

Broader indices showed divergence with the benchmark indices during the week, as the Nifty Midcap100 only dipped 0.28 per cent, while Nifty Smallcap100 gained 1.62 per cent.