Mumbai, Sep 26 (IANS) The Indian equity benchmarks posted notable losses for the seventh consecutive week, as crude prices stayed elevated and US bond yields surged.
Nifty declined 0.88 per cent during the week and added 0.34 per cent on the last trading day to reach 23,140. At close, Sensex was up 315 points, or 0.43 per cent, at 73,895. It lost 0.54 per cent during the week.
Markets came under heavy selling pressure midweek as benchmarks slid over 1.6 per cent on Thursday before a modest rebound on Friday driven by value buying.
Brent crude stayed above the $105-per-barrel mark for most of the week, while WTI crude also remained elevated above $90 per barrel amid continued geopolitical uncertainty and concerns over global oil supplies.
However, oil prices moderated toward the end of the week, and eased global risk sentiment, concerns of pressure on the import bill, inflation expectations, the rupee and corporate input costs.
Analysts said that the global bond market continued to add pressure, with the US 10-year Treasury yield moving above 5.10 per cent during the week. Elevated yields continue to tighten global financial conditions and can reduce the relative attractiveness of emerging market assets, they added.
Foreign institutional selling has intensified significantly compared with previous weeks and has become a major headwind for domestic equities.
Meanwhile, Iran has submitted a new seven-day proposal to the United States to end the ongoing conflict and reopen the strategically important Strait of Hormuz if Washington lifts its naval blockade, waives oil sanctions and agrees to a broader ceasefire.
The 23,000 zone remains the immediate support area for Nifty, while the 23,200 region remains the immediate resistance zone, said analysts.
Market participants are also keen on the trajectory of rupee, with persistent oil-related demand for dollars and continued FII outflows potentially keeping the currency under pressure, although RBI intervention has helped contain excessive volatility.
—IANS
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