Nifty posts seventh straight weekly loss, crude and global yields keep bulls at bay

Benchmark indices clawed back some ground on Friday after Thursday’s sharp sell-off, though the recovery was narrow and tentative as a clutch of macro headwinds, elevated crude oil prices, high US bond yields and persistent foreign fund outflows, continued to weigh on sentiment. The Nifty 50 closed at 23,140.50, up 77 points or 0.34 per cent on the day, while the Sensex settled at 73,895.74, higher by 0.43 per cent. For the week, however, the Nifty fell 0.88 per cent, its seventh consecutive weekly decline, and has now shed over 1,750 points from its early-August peak of 24,772.

Friday’s session was defined as much by what didn’t happen as what did. Brent crude, despite easing around 1.2 per cent to $105.3 a barrel, remained well above $100 as markets processed two competing scenarios simultaneously: further Houthi attacks on Saudi infrastructure versus a potential diplomatic off-ramp after reports emerged of US-Iran negotiations over a phased reopening of the Strait of Hormuz. WTI held in the $92–$93 range. The US 10-year Treasury yield remained near 5.2 per cent, close to its highest level since 2007, keeping up the pressure on global risk appetite.