Indian Stock Market Indices Decline Amidst West Asia Deal Delay and Oil Price Hike

Indian stock market indices, **Nifty** and **Sensex**, ended in the red for a third consecutive week due to a delay in the West Asia deal and a spike in oil prices.

Indices Decline Amidst West Asia Deal Delay and Oil Price Hike

The **Nifty** fell 29.85 points, or 0.1%, to close at 24,366, while the **Sensex** declined 70.71 points, or 0.1%, to end at 78,009.25.

The indices declined 0.8% and 0.6% for the week, respectively, after two straight weeks of losses.

Market Experts Weigh In on the Situation

“Benchmark indices remained subdued this week as the US-Iran deal, which was expected last weekend, was deferred again,” said Siddhartha Khemka, head of research at Motilal Oswal Financial Services.

“Oil prices spiked after the delay, adding pressure on Indian equities,” he added.

Market Impact: Oil Prices and Volatility Index

• Brent crude oil October futures were trading above $88 a barrel on Friday evening and remained elevated through the week, compared with their close of $83.5 a barrel last Friday.
• The India Volatility Index, or VIX-a gauge of fear in the markets-fell 0.9% to 11.3 on Friday and has dropped 11.5% in the past five sessions, indicating some relief among traders.

Key Takeaways

• The **Nifty** and **Sensex** indices declined 0.8% and 0.6% for the week, respectively.
• The **Nifty** fell 29.85 points, or 0.1%, to close at 24,366.
• The **Sensex** declined 70.71 points, or 0.1%, to end at 78,009.25.

FAQs

What is the current status of the US-Iran deal?

The US-Iran deal has been deferred again, which has led to a delay in the West Asia deal.

How has the oil price hike affected the Indian stock market?

The oil price hike has added pressure on Indian equities, leading to a decline in the **Nifty** and **Sensex** indices.

What is the current trend in the **Nifty** and **Sensex** indices?

The **Nifty** and **Sensex** indices are currently in a range-bound zone, with the **Nifty** hovering around the confluence zone of its 100-day and 200-day Exponential Moving Averages (EMA).

Conclusion

The Indian stock market indices, **Nifty** and **Sensex**, have ended in the red for a third consecutive week due to a delay in the West Asia deal and a spike in oil prices. While the market experts are optimistic about the overall earnings breadth, the current trend suggests that the indices will remain range-bound in the short term. As a result, investors are advised to remain cautious and wait for fresh triggers before making any investment decisions.