On Friday, Indian equity markets faced a downturn, with the benchmark Sensex closing at 76,664, down 1,000 points or 1.3%. The Nifty index also fell by 275 points to 23,898, marking a 1.14% decline. This drop was largely attributed to a significant 5.3% fall in the Nifty IT index, its worst single-day performance since February, following disappointing growth forecasts from major companies like Infosys and HCLTech. Over the week, the Sensex and Nifty recorded declines of 2.3% and 1.9%, respectively. The total market capitalisation of BSE-listed firms decreased by ₹5 trillion to ₹461.5 trillion (approximately $4.89 trillion).

Geopolitical tensions in the Middle East, particularly regarding the Strait of Hormuz, have exacerbated market concerns. Brent crude oil prices surged to $101 per barrel, reflecting a 10% increase for the week, which poses challenges for India due to its heavy reliance on energy imports. Analysts from firms like HSBC and JPMorgan have downgraded their outlook on Indian equities, citing concerns over inflation and domestic demand. The market breadth was unfavorable, with around 3,000 stocks declining compared to 1,241 advancing. Foreign portfolio investors were net sellers of ₹8,828 crore on Friday, while domestic institutional investors purchased shares worth ₹4,701 crore. Analysts suggest that a 10% increase in retail fuel prices could be imminent if the situation in the Strait of Hormuz remains unresolved, potentially leading to further market corrections.