Weekly Market Wrap: NIFTY50, SENSEX end lower as metal, IT indices fall 4%; Infosys leads losses

The Indian stock market snapped a two-week winning streak, ending the holiday-shortened week on a weaker note. In the four trading sessions, the NIFTY50 declined 112 points, or 0.5%, while the BSE Sensex fell 309.51 points, or 0.4%.

Despite a strong rally in the final trading session on Thursday, June 26, benchmark indices ended the week lower as investors booked profits ahead of the long weekend.

Investor sentiment during the week was supported by a sharp decline in global crude oil prices, which fell over 9.5% to around $72.41 per barrel, nearing pre-US-Iran war levels. Optimism over a possible easing of tensions and improved maritime trade through the Strait of Hormuz further lifted the mood.

“The near-term outlook for Indian equities looks positive, provided crude stabilises in the $70 to $75 range and the monsoon does not disappoint," said Rajeev Sharan, Head of Research, Brickwork Ratings.

Meanwhile, the decline in the indices was largely influenced by weakness across Asian markets amid concerns over the sustainability of the AI-driven rally, dampening overall market sentiment.

Rising expectations of an India–US trade deal also made investors cautious, as both sides reviewed progress on an interim agreement during the week. However, key issues such as market access, digital trade, and non-tariff barriers remain unresolved ahead of next month’s tariff deadline.

Commerce and Industry Minister Piyush Goyal on June 26 said that the trade pact with the US is “very close," but it cannot come into force unless India secures a competitive tariff advantage over its competitor nations.

Nilekani said every major technology transition evokes questions about relevance and the ability to protect growth and margins. AI's larger and disruptive technology transition only means that such questions are louder and doubts more insistent, he said.

IndiGo operator InterGlobe Aviation's shares jumped during the week following a drop in the crude oil prices. The rally in Cipla and Dr. Reddy's came after analysts from Citi and Nomura shared a positive outlook for the companies.

Sectoral watch this week

Among sectors, the Nifty Metal index emerged as the biggest laggard, declining 4.3%, followed by Nifty IT, which fell 4%. Nifty Consumer Durables and Nifty PSU Bank also dropped 2.8% and 1.5%, respectively, while the Nifty Oil & Gas index ended the week 1.4% lower.

The sharp decline in metal stocks was driven by falling global prices and weakening demand amid an uncertain global outlook. Among the worst performers on the Nifty Metal index, shares of Vedanta, NALCO, and Hindustan Zinc declined 10.6%, 9.7%, and 9.3%, respectively, during the week.

Meanwhile, Nifty Pharma was the top gaining sector in the week, rising 2.8%, followed by Nifty Private Bank (1%), Nifty Auto (0.9%), Nifty Realty (0.7%), and Nifty Bank (0.4%).

The rise in the Nifty Bank index was supported by the Reserve Bank of India’s (RBI) liquidity infusion of ₹1,41,171 crore through a seven-day variable rate repo (VRR) auction, which boosted investor confidence. The funds were injected at a cut-off and weighted average rate of 5.26%.

India VIX, the volatility gauge, stood at 13.05 levels, climbing 3% during the week.

How the broader market performed this week

During the week, the Nifty Midcap 100 declined 0.9%, underperforming the benchmark indices, while the Nifty Smallcap 100 rose 0.5%, outperforming the broader market.

Bharat Forge shares rally came as the firm secured a major order from the Ministry of Defence. The company signed a ₹425 crore contract with the Ministry of Defence for the supply of gas turbine generators to the Indian Navy for onboard power generation on Kolkata-class ships. The contract will be executed over a period of 5 years.

The Indian stock exchanges, including the National Stock Exchange (NSE) and BSE, remained closed on Friday, June 26, on account of Muharram.