Shares experienced a notable downturn for the fifth consecutive session on Friday, marking their worst weekly performance in over two years. Investor anxiety over the escalating conflict in the Middle East, coupled with increasing foreign capital outflows, has contributed to this market slump.
The Nifty 50 index dropped by 0.93% to close at 25,014.6, while the S&P BSE Sensex declined by 0.98%, ending the day at 81,688.45. Over the week, both benchmarks plummeted approximately 4.5%, reflecting their most significant decline since June 2022. A substantial factor in this week’s downturn was a sharp 2% drop on Thursday.
The rising tensions in the Middle East have raised alarms regarding potential disruptions to crude oil supplies from one of the world’s leading oil-producing regions. This situation has resulted in a spike in crude prices, posing a significant challenge for net importers like India. “As geopolitical tensions escalate, the threat to oil supply becomes a pressing concern for investors,” noted a market analyst.
With foreign capital increasingly flowing out, market sentiment remains fragile. Investors are closely monitoring developments in the region, and the potential impact on global oil markets could continue to drive volatility in the coming weeks.