Mumbai’s stock market wrapped up the week on a sour note, with the Sensex and Nifty both sliding around 1.5% amid heightened global uncertainties and geopolitical strains. Investors adopted a cautious stance as volatility rocked international markets, particularly due to ongoing uncertainties surrounding US-Iran nuclear talks.
Despite positive domestic signals like robust GDP growth figures, the sentiment remained bearish. The benchmark Sensex plummeted 961.42 points, or 1.17%, to close at 81,287.19 on Friday, while the Nifty shed 317.90 points, or 1.25%, ending at 25,178.65 below the crucial 25,200 mark.
Broad market indices faced similar pressure, with Nifty Midcap 100 and Smallcap 100 indices declining over 1%. Selling pressure dominated most sectors, including auto, banking, FMCG, metals, and realty, which fell 1-2%. IT, media, and consumer durables offered some respite, closing in green.
Market analysts point to negative global cues and persistent geopolitical worries as key drivers behind the limited participation from investors. The Nifty has broken below its recent trading range, signaling potential short-term corrections ahead.
“The 25,400 level now acts as immediate resistance, and volatility could persist due to global uncertainties,” noted one analyst. Bank Nifty also saw profit booking, forming a negative pattern, with support eyed at 60,000-60,200.
Experts foresee Bank Nifty trading between 60,000 and 61,750 in the near term, with a breakout determining the next move. Siddharth Khemka from Motilal Oswal Financial Services highlighted that while domestic economic strength and select sectors provide support, institutional flows and global events will dictate direction.
The lack of concrete outcomes from US-Iran discussions on the nuclear program has rattled investor confidence. Though both sides signal talks next week, uncertainties over US actions, energy markets, and regional stability keep markets on edge.
Looking ahead, Indian equities may trade in a narrow range with caution prevailing, balancing strong fundamentals against external headwinds.