Stock markets end lower for 6th straight week over West Asia conflict

Mumbai, April 3 Indian equity markets closed lower for the sixth consecutive week amid escalating geopolitical tensions in West Asia and sharp currency fluctuations, with both headline indices ending in the red during a shortened four-day trading week.

Sensex ended at 73,319.55 on Thursday, down 263.67 points or 0.35 per cent, compared to the previous Friday's close. Nifty 50 settled at 22,713.10, a decline of 106.50 points or 0.46 per cent on a week-on-week basis.

In the final session of the week, both benchmarks plummeted in early trade -- the 50-scrip basket shedding over 500 points and Sensex declining more than 1,500 points -- after US President Donald Trump warned of possible intense military strikes on Iran within the next two to three weeks, offering no clarity on a diplomatic resolution to the conflict. Markets, however, recovered partially by the close.

Among Nifty 50 constituents, HDFC Life Insurance, Sun Pharma, Dr Reddy's Laboratories, NTPC and Cipla were the top losers for the week.

Among broader indices, the BSE Midcap 150 underperformed the benchmarks, declining 0.6 per cent week-on-week, while the BSE Smallcap 250 bucked the trend and rose 0.8 per cent over the same period.

On a sectoral basis, realty, healthcare and banking were the top gainers for the week, rising approximately 3 per cent, 2.7 per cent and 1 per cent, respectively. Metal, power and consumer durables were the top losers, each falling more than 2 per cent.

Market analysts said equities were likely to remain volatile in the coming week, with investor sentiment closely tied to developments in the West Asia conflict.

Indian equities are likely to remain volatile, with investor sentiment closely tied to evolving developments in the ongoing West Asia conflict. While the US continues to assess its response, recent comments from US President Donald Trump indicate a more assertive stance, warning of possible military action if negotiations fail, while still leaving room for diplomacy," according to experts.

Any signs of de-escalation in the West Asia conflict may provide relief through softer crude prices and currency stability, while further escalation could prolong risk aversion and sustain pressure on foreign flows, the analyst added.

Brent crude prices have remained elevated near $107 per barrel.

Further, markets will reopen after a three-day break and are expected to track multiple major events such as including the RBI monetary policy committee's rate decision, US Federal Open Market Committee (FOMC) meeting minutes due on Wednesday (April 8), and the start of the Q4 FY26 earnings season.

The stock exchanges will remain shut on account of Good Friday on Friday.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

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