Indian equity markets ended the week in the red as rising global oil prices, a weakening rupee, and renewed concerns around artificial intelligence-driven disruption in the IT sector weighed heavily on investor sentiment.
The NIFTY 50 closed Friday down 0.19 percent at 23,643.50, while the BSE Sensex slipped 0.21 percent to 75,237.99. On a weekly basis, the indices fell 2.2 percent and 2.7 percent respectively, ending a two week winning streak.
Meanwhile, the Indian rupee weakened beyond the 96 per dollar mark for the first time, touching a record low after losing 1.5 percent during the week. Foreign investor outflows in 2026 have already reached a record 23.63 billion dollars.
Oil surge rattles markets
Investor concerns intensified after Brent crude jumped 3.4 percent to 109.3 dollars per barrel following an attack on one vessel and the seizure of another in the Middle East, fuelling fears over global energy supplies.
The sharp rise in crude prices added pressure on fuel-sensitive sectors and revived worries about inflation.
According to Vinod Nair, investors have become increasingly cautious amid rising US bond yields, a weakening rupee, and fresh fuel price hikes. He added that attractive valuations and a strong earnings season have prevented a steeper market correction.
IT stocks under pressure over AI concerns
The information technology sector remained among the biggest laggards during the week.
Although the IT index gained 1.3 percent on Friday, it still ended the week down 5.7 percent after concerns emerged over the impact of artificial intelligence on future earnings.
Market sentiment weakened further after OpenAI announced a new AI venture backed by a 4 billion investment, raising fears about increased competition and revenue risks for traditional IT firms.
The sector also faced pressure after stronger-than-expected inflation data from the United States increased expectations of another interest rate hike this year.
Adani, ONGC among gainers
Adani Enterprises rose 8.4 percent during the week after Uber announced plans to establish its first India data center in partnership with the group.
Investor sentiment around the company improved further following reports that the US Justice Department may drop criminal fraud charges against founder Gautam Adani.
Oil and Natural Gas Corporation also gained 7.2 percent after the government reduced royalties on crude oil and gas production.
Jewelry and oil marketing firms fall
Titan Company declined 7.5 percent after missing quarterly profit expectations. Jewelry stocks broadly remained under pressure after Narendra Modi urged citizens to avoid gold purchases for a year as part of austerity measures linked to the ongoing global energy crisis.
Oil marketing companies also faced selling pressure on Friday. Shares of Bharat Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited, and Indian Oil Corporation fell between 2.9 percent and 4.2 percent as soaring Brent crude prices outweighed recent hikes in petrol and diesel prices.
Tata Motors gains on growth optimism
Tata Motors Passenger Vehicles emerged among the notable gainers, rising 5.3 percent on optimism surrounding upcoming launches, cost reduction measures, and strong volume growth expectations.
