Mumbai’s stock market ended the week on a sour note, with the Sensex and Nifty indices plunging nearly 3 percent amid escalating Middle East tensions and relentless selling by foreign institutional investors (FIIs). The benchmark Sensex closed at 78,918.90, down from 81,287.19, while the Nifty settled at 24,450.45 after slipping from 25,178.65.
FIIs withdrew over ₹23,000 crore from Indian equities this week, adopting a risk-averse stance amid global uncertainties. Rising crude oil prices, with Brent crude nearing $86 per barrel, added to the gloom as geopolitical risks in the Middle East intensified.
Domestic institutional investors (DIIs) provided some cushion, stepping in with robust buying to limit the downside. Broad market indices like BSE Midcap and Smallcap also shed around 3 percent, reflecting widespread pressure.
Sector-wise, realty tumbled 4.9 percent, oil & gas 4.8 percent, bankex 4.6 percent, auto 3.9 percent, and consumer durables 3.1 percent. In contrast, capital goods edged up 0.2 percent, and defense stocks surged nearly 3 percent as investors sought safe havens amid global strife.
Market volatility spiked, with India VIX jumping over 11 percent, signaling heightened investor caution. Analysts note that while short-term pressures persist, strong domestic flows via SIPs and DIIs underscore the market’s long-term resilience. The Nifty now hovers near its 200-day moving average at 24,450, but fundamentals remain solid.