Nifty Recovers on Friday, But Records Its Longest Weekly Losing Streak Since COVID-19 Market Sell-Off

Indian equity markets witnessed a recovery on Friday, September 25, after suffering their steepest single-day decline in nearly 10 weeks during the previous session. The rebound was supported by buying in banking stocks, although concerns surrounding elevated crude oil prices and rising global bond yields continued to limit the upside.

The Nifty 50 opened at 23,035 and remained range-bound during most of the trading session. The index touched an intraday low of 23,020.95 and a high of 23,162.70 as investors balanced bargain buying with lingering macroeconomic concerns. In the final hours of trade, buying momentum strengthened, helping the index reclaim the 23,100 level.

The Nifty 50 closed at 23,140.50, gaining 77.40 points or 0.34%. The Sensex advanced 315.20 points to settle at 73,895.74. The Bank Nifty also ended higher, rising 0.26%, while India VIX, the market volatility gauge, declined 4.2% to 12.16.

Nifty’s Seven-Week Slide Marks Its Longest Losing Run Since 2020

Despite Friday’s recovery, the Nifty remained under pressure on a weekly basis. The benchmark index declined 0.88% during the week, extending its losing streak to the seventh consecutive week.

The NIFTY50 index has now declined for seven consecutive weeks, marking its longest weekly losing streak in nearly six years. The last time the benchmark witnessed such a prolonged losing streak was during the COVID-19-led market sell-off in 2020. 

Broader Markets End Mixed

The broader market witnessed a mixed trend on Friday. The Nifty Midcap 100 index declined 0.14%, while the Nifty Smallcap 100 index gained 0.15%.

Positive Market Breadth on September 25

Market breadth remained slightly positive on September 25, with buying interest visible across a wider set of stocks.

Out of 3,647 stocks traded on NSE, 1,925 stocks advanced, 1,594 declined, while 128 remained unchanged.

A total of 90 stocks touched their 52-week highs, whereas 120 stocks hit their 52-week lows.

Meanwhile, 130 stocks were locked in their upper circuits, while 88 stocks hit lower circuits.

Sectoral Performance: Nifty Realty Top Gainer 

Sectoral performance remained largely positive, with eight out of 11 major Nifty sectoral indices ending higher.

The Nifty Realty index emerged as the top-performing sector, rising 0.92%. DLF was among the key contributors, gaining more than 1.8%.

In contrast, the Nifty Media index ended as the weakest performer, declining 0.23%. The index extended its losing streak to the third consecutive session, with three out of 10 constituents closing in negative territory.

Crude Oil Remains a Key Market Concern

Crude oil prices continued to remain elevated as investors tracked global supply conditions and geopolitical developments. Brent crude futures were trading near $105.60 per barrel, while WTI crude futures were around $96 per barrel.

Oil prices remained volatile after concerns over supply disruptions eased following improvements in crude flows and progress towards restoring Saudi Arabia’s East-West pipeline operations. However, prices continued to remain at elevated levels, keeping inflation concerns alive for emerging markets, including India.

Rupee Gains as RBI Steps In Amid Dollar Pressure

The Indian rupee showed mild recovery on Friday, closing at 95.8125 per US dollar compared with the previous close of 95.9550. The currency received support from softer crude oil prices and a marginal decline in the US dollar.

However, the rupee remained under pressure throughout the week due to concerns over higher crude prices and rising global bond yields. The Reserve Bank of India (RBI) reportedly intervened in the foreign exchange market to prevent excessive volatility.

The central bank’s dollar-rupee sell-buy swaps and liquidity management measures also pushed forward premiums higher. The one-year forward yield touched 3.50%, marking its highest level since May.

European Markets Trade Higher

European equity markets traded in positive territory on Friday, supported by improved investor sentiment. Investors remained focused on global interest rate expectations, bond yields and crude oil movements.

Germany’s DAX traded at 25,440.89, gaining 184.97 points or 0.73%.

The UK’s FTSE 100 advanced 26.11 points or 0.24% to trade at 10,706.10.

France’s CAC 40 edged higher by 8.60 points or 0.11% to 8,090.03.

Dow Futures Up 117 Points: US Futures Rise as Technology Stocks Support Gains

US equity futures traded higher on Friday, with technology stocks leading the recovery across major indices. Dow Jones futures were trading at 51,834.00, up 117 points or 0.23%. S&P 500 futures gained 21.75 points or 0.28% to trade at 7,788.75.

Nasdaq 100 futures outperformed, rising 168 points or 0.55% to 30,934.75, indicating stronger momentum in technology-focused stocks.