The week started on a cautious note as markets reacted to renewed tensions between the US and Iran. On 20 April, crude oil prices surged sharply (around 6–7%), nearing $100 again despite ceasefire expectations, which immediately created pressure on global and Indian markets.
Although the Nifty managed to hold steady around 24,300 levels initially, sentiment remained fragile due to rising energy prices and uncertainty around peace talks.
As the week progressed, the situation worsened. The Strait of Hormuz disruptions continued, and peace talks failed to show meaningful progress. This pushed crude oil further above $105–107, increasing global inflation concerns and triggering risk-off sentiment across markets.
Indian markets came under significant pressure during mid-to-late week sessions. Nifty and Sensex declined consistently, extending losses for multiple sessions. By 24 April, markets had corrected sharply, with Sensex falling nearly 1000 points in a single session and Nifty slipping below key support levels.
Overall, Nifty ended the week down around ~1.9%, reflecting sustained selling pressure.
The major driver behind this fall was the sharp rise in crude oil prices, which directly impacts India as a net importer. Elevated oil prices increased concerns around inflation, fiscal pressure, and corporate margins. At the same time, the rupee saw a sharp decline, marking one of its steepest weekly drops in recent years, further adding to macro concerns.
Sector-wise, IT stocks saw a sharp correction (over 10% weekly decline) due to weak earnings outlook from companies like Infosys and HCLTech, which further dragged overall market sentiment.
Most sectors ended in the red, with banking, metals, and midcaps also facing selling pressure, although select stocks showed resilience.
Flows remained weak throughout the week, with FIIs continuing to sell amid global uncertainty and rising oil prices, while DIIs provided limited support. In addition, global brokerage firm JP Morgan downgraded Indian equities to “neutral,” citing valuation concerns and rising oil-linked risks to earnings, which further impacted investor confidence.
On the global front, markets also remained volatile as oil-driven inflation fears and stalled geopolitical negotiations dominated sentiment. The overall environment shifted from cautious optimism at the start of the week to clear risk-off mode by the end.
By Friday, markets were clearly under pressure, with three consecutive sessions of decline driven by rising oil, geopolitical escalation, rupee weakness, and continued FII selling.
This chain reaction dominated market behaviour, with fundamentals taking a back seat and macro risks driving investor decisions.