CHENNAI: Indian equities ended the week (September 22-26) on a weak note after swinging between optimism and selling pressure. The BSE Sensex and NSE Nifty 50 slipped, with the decline deepening on Friday as IT and metal stocks dragged the indices lower.
Early in the week, markets drew support from hopes of progress in India–US trade talks, but sentiment soured after Washington raised visa fees and imposed steep tariffs on certain drug exports. Foreign portfolio investors turned net sellers in the latter part of the week, adding to the downward pressure.
Sector performance was mixed. Public sector banks, realty and defence shares extended recent gains, while export-linked IT and pharmaceutical companies came under stress. Market breadth turned negative by the end of the week as global cues weighed heavily.
The Indian rupee had its weakest week in a month, closing around Rs 88.72 against the US dollar with a weekly drop of about 0.7 percent. The currency even touched a new intraday record low of Rs 88.80 before recovering slightly. The slide was triggered by higher US visa fees, tariff concerns and capital outflows. The Reserve Bank of India was active in the foreign exchange market to contain volatility, but bond market pressures and stronger US yields limited the rupee’s ability to recover.
Commodities offered a contrasting picture. Gold continued its rally, crossing Rs 1.11 lakh per 10 grams in domestic markets as investors sought safe-haven assets. Silver also posted weekly gains. In energy markets, crude oil prices slipped globally on oversupply concerns, easing some pressure on India’s import bill. Base metals, including copper, were under pressure due to weaker demand trends. On the trade front, analysts projected India’s edible oil imports could hit a record 17.1 million metric tons in the coming year, with palm oil leading the rise. Russia has also stepped up efforts to expand sunflower oil exports to India.
Outlook
The coming weeks will be shaped by the progress of US–India trade talks, foreign investor flows and global rate expectations. The rupee remains vulnerable to external shocks, while commodity prices may stay volatile. Domestically, earnings trends and festive-season demand will be key factors for equity performance, but political and trade risks from overseas are likely to keep volatility elevated.