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Indian stock market: The Indian stock market closed the week on a subdued note, extended its losing streak for a fifth straight week, as rising volatility driven by shifting global cues and escalating geopolitical tensions in the Middle East.

On Friday, March 27, both the benchmark indices — Sensex and Nifty 50 — dropped over 2% each. The Sensex plunged 1,690 points, or 2.25%, to close at 73,583, while the Nifty 50 fell 487 points, or 2.09%, to settle at 22,819.60. Broader markets also remained under pressure, with the BSE 150 Midcap index declining 2.18% and the BSE 250 Smallcap index slipping 1.82%.

“Indian equity markets remained volatile and under pressure throughout the week, with sentiment continuing to stay fragile amid persistent geopolitical tensions, elevated crude oil prices, and sustained foreign outflows. Although the market attempted intermittent recoveries during the week, the broader structure remained weak, with indices failing to sustain gains at higher levels,” said Ponmudi R, CEO - Enrich Money.

According to Ponmudi, markets are likely to remain volatile and driven by developments on the geopolitical front, as investors will be closely watching the situation in the Middle East, where any escalation or signs of easing could quickly shift sentiment, particularly through their impact on crude oil prices.

“Elevated oil prices are expected to keep pressure on markets, while any pullback could prompt short-covering and support a rebound. Foreign investor flows, moves in the rupee, and broader global market trends are also likely to play a key role in shaping the near-term outlook,” he added.

There are still few indications that Iran and the US will enter peace talks anytime soon, despite Donald Trump pushing for negotiations this week. He has extended the deadline to April 6 for Tehran to agree to reopen the crucial Strait of Hormuz or face the destruction of its power infrastructure.

Iran has turned down a 15-point proposal from Trump that offered sanctions relief in exchange for dismantling its nuclear facilities, scaling back its missile programme, and reopening the Strait of Hormuz. The strategic waterway — which typically handles about a fifth of global oil and liquefied natural gas flows — has been largely shut since the US and Israel launched strikes on Iran on February 28.

(This is a developing story)

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.

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