The Weekly Stock Market Report shows that Indian equity markets remained under pressure in the week ended September 11, with the benchmark Sensex and Nifty extending their losing streak to five consecutive weeks. Rising crude oil prices, escalating tensions in West Asia, a weaker rupee, foreign investor selling and concerns over higher global interest rates kept investors cautious.

Key Highlights

• Sensex and Nifty extended losses for the fifth straight week amid crude oil, geopolitical and global rate concerns.
• NSE IPO, crude prices, foreign flows and US inflation data will remain key market triggers next week.

The Nifty 50 closed Friday at 23,398.10, down 79.70 points or 0.34%, while the Sensex ended at 74,781.76, lower by 120.83 points or 0.16%. On a weekly basis, the Nifty declined around 2.09%, while the Sensex fell approximately 2.26%. Over the past five weeks, both indices have lost nearly 4.8%.

Nifty and Sensex Weekly Performance

Monday: IT Stocks Lead Market Decline

The week began on a weak note, with the Nifty declining 0.50% to 23,779.15 and the Sensex falling 382.62 points to 76,132.81.

A firmer-than-anticipated U.S. job report weighed on IT stocks, amid concerns about the potential for higher U.S. rates. Rising crude prices and continued tensions around the Strait of Hormuz added to inflation worries. 14 out of 16 major sectors finished in the red, with the Nifty IT index losing 2.3%.

Tuesday: Crude Oil Nears $100

Crude-oil futures surged toward $100 a barrel as selling pressure grew Tuesday ahead of the growing Middle East tensions.

The Nifty slipped 0.61% to 23,635.10, while the Sensex declined 555.23 points or 0.73% to 75,577.58. Private banks and big financial stocks like ICICI Bank, Axis Bank and HDFC Bank continued to be under pressure.

Defence stocks gained after defence procurement approvals worth around please review this pdf and check if any grammer and spelling error1.1 lakh crore, although the newly introduced Closing Auction Session added to volatility around the market close.

Wednesday: Brent Crude Crosses $100

Brent crude pushed above $100 per barrel on Wednesday, triggering another big sell-off. The Sensex plunged 813.35 points or 1.08% to 74,764.23, while the Nifty fell 203.60 points or 0.86% to 23,431.50.

The Nifty IT index fell by 3.24% while technology stocks took a hit on prospects of a hike in interest rates in the US. Energy and metal stocks offered some relief while Adani Enterprises rose 5.1% after announcing its plans to sell a partial stake in its airport business.

Thursday: Sensex, Nifty Recover Marginally

The benchmark indices reversed from three straight losses on Thursday. The Nifty gained 46.30 points or 0.20% to 23,477.80, while the Sensex rose 138.36 points or 0.19% to 74,902.59.

The recovery was helped by selective buying in large cap stocks, as Brent crude continued to exceed $100. But investors kept an eye on crude prices, bond yields and the rupee as well as geopolitical developments.

Friday: Markets End Lower

The last trading session was volatile as the Nifty ended 0.34% lower at 23,398.10, while the Sensex was 0.16% lower at 74,781.76.

The selling of metals, Reliance Industries and other cyclical stocks were the main reasons that kept the indices in negative territory during the day although both recovered their intraday lows. HDFC Bank was up 2.02%, Tata Steel fell 1.67% and Reliance Industries tumbled 1.33%.

Foreign institutional investors sold Rs 438.24 crore of Indian equities on Friday, while domestic institutional investors bought Rs 1,025.85 crore, offering some support to the market.

Sector Performance

IT stocks were the biggest drag during the week, with the Nifty IT index declining around 5.8% amid US rate concerns and worries over demand.

Financial stocks also remained weak, with the financial sector falling around 1.9%. Metals and automobile stocks faced selling pressure, while upstream energy companies such as ONGC and Oil India showed relative strength as crude prices increased.

Also Read: Weekly Stock Market: Nifty and Sensex Fall for Fourth Straight Week

Key Factors Driving the Stock Market

Crude Oil Prices Above $100

Investors' primary worry was crude oil. Geopolitical uncertainty around energy supplies and shipping routes came into play as Brent crude rose over 8% in the past week and passed $100 a barrel. Rising crude prices could add to the rate inflation and add to the rupee's burden, widen India's trade deficit.

West Asia Geopolitical Tensions

The Middle East and disruptions in key energy shipping lanes increased fears that global energy supplies would be impacted. The Strait of Hormuz remained an important area of focus for investors.

Rupee Weakness

The rupee weakened by the most since May on the week around 1% against the US dollar. The depreciation of the currency along with rising crude prices could further push up pressure on India's import bill and inflation outlook.

Foreign Investor Selling

Foreign investors remained cautious toward Indian equities. Continued domestic institutional buying provided some support, but foreign outflows remained a key headwind for the market.

US Federal Reserve Rate Concerns

Higher crude prices have renewed global inflation concerns, increasing expectations that the US Federal Reserve could maintain a restrictive monetary policy for longer. Investors will therefore closely monitor upcoming US inflation data for signals on the Fed's next policy decision.

NSE IPO to Remain in Focus Next Week

The National Stock Exchange’s long-awaited IPO emerged as another major development for India’s capital markets.

NSE is targeting a valuation of approximately Rs 4.42 lakh crore ($46.3 billion). The IPO is scheduled to open on September 17 and close on September 21, with listing expected around September 24.

The NSE IPO price band has been fixed at Rs 1,700–Rs 1,785 per share, with existing shareholders selling shares instead of the exchange raising fresh capital.

Weekly Stock Market Outlook

The next week outlook of stock market is cautious to bearish. Investor sentiment will be guided by crude oil prices, West Asia tensions, rupee, foreign institutional flows and the US inflation data.

The Nifty 23,400 level will be of near-term significance to continue to watch out. If the price can maintain below this level, it will accelerate selling pressure, and if it can return to above 23,500, it will be better for short-term sentiment. Investors will also be closely watching the NSE IPO that will go public on September 17.