Indian Shares Log Weekly Losses As Oil Prices Rise And IT Stocks Decline

Indian equities ended the week in negative territory on Friday, as surging global oil prices, persistent foreign fund outflows and weakness in IT stocks weighed heavily on market sentiment. The rupee also extended its decline, slipping past the 96-per-dollar mark and touching record lows during the week.Benchmark indices closed lower on the final trading session, with the Nifty 50 falling 0.19% to 23,643.50 and the Sensex declining 0.21% to 75,237.99.

Over the week, both indices recorded losses of 2.2% and 2.7% respectively, ending a two-week winning streak and reflecting renewed risk aversion among investors.Market pressure was largely driven by a sharp rise in crude oil prices, with Brent crude climbing 3.4% to $109.3 per barrel. The increase followed reports of attacks on vessels and disruptions in the Middle East, raising concerns over global energy supply stability.

The spike in oil prices has intensified inflation worries for import-dependent economies like India.Currency markets also reflected stress, with the rupee weakening sharply and recording a 1.5% weekly decline. Foreign portfolio outflows have added further pressure, with net withdrawals estimated at $23.63 billion so far in 2026, contributing to sustained weakness in domestic financial assets.Sector-wise, selling pressure was broad-based.

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Thirteen of the sixteen major sectoral indices ended the week in the red, while broader markets underperformed, with small-cap stocks falling 4.6% and mid-caps declining 2.2%. IT stocks, in particular, saw a steep weekly drop of 5.7%, despite a minor rebound of 1.3% on Friday.Sentiment in the IT sector was affected by concerns over artificial intelligence-driven disruption to traditional outsourcing revenue models, alongside a hotter-than-expected US inflation print that raised expectations of higher interest rates and added pressure on global tech valuations.

Despite the overall weakness, select stocks outperformed. Adani Enterprises gained 8.4% during the week after reports that Uber would establish its first India data centre with the group. Additional support came from speculation around easing legal pressure on group founder Gautam Adani in the United States. ONGC also rose 7.2% after the government reduced royalties on crude oil and gas production, improving sector outlook.Analysts noted that while valuations and earnings remain relatively supportive, macroeconomic headwinds—including oil price volatility, currency depreciation, and global interest rate uncertainty—continue to dominate near-term market direction.

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