Sensex, Nifty Fall for 4th Week as Crude Oil Shock Keeps Investors Cautious

September 5, 2026

New Delhi: Indian equity markets remained volatile and under pressure throughout the week, with the benchmark Nifty extending its losing streak to four consecutive weeks as rising crude oil prices and escalating US-Iran hostilities kept investors cautious.

Nifty, Sensex End Week in Red

The Nifty ended the week at 23,897.70 after gaining 0.10 per cent on Friday. Despite the late recovery, the index declined around 1.2 per cent during the week.

The index also snapped a four-session losing streak on Friday but remained below key moving averages, pointing to continued weakness in the near-term technical structure.

The Sensex closed at 76,515.43 on Friday, rising 362.57 points, or 0.48 per cent. However, the benchmark declined around 1 per cent over the week and remained in a broader corrective and consolidation phase.

Crude Oil Prices Add to Market Pressure

The biggest concern for Indian equities came from the sharp rise in crude oil prices. Brent crude gained more than 8 per cent during the week, while WTI crude rose over 9 per cent.

Renewed US-Iran hostilities and concerns over possible disruptions around the Strait of Hormuz pushed up the geopolitical risk premium in global energy markets.

Higher crude prices have raised concerns over their impact on India’s inflation, current account balance and corporate profitability, limiting the positive impact of strong domestic economic data.

Strong Economy Fails to Lift Investor Sentiment

India’s economy grew 7.8 per cent in the first quarter of FY27, comfortably exceeding market expectations. Strong GST collections also indicated continued momentum in domestic economic activity.

However, the positive economic indicators failed to provide a sustained boost to the stock market as investors remained focused on the potential impact of rising oil prices.

Foreign institutional investors continued to put pressure on the market, recording net outflows of around ₹5,600 crore during the week.

Domestic institutional investors provided significant support, with net inflows of around ₹18,560 crore, helping absorb a substantial portion of the foreign selling.

On a month-to-date basis, FIIs remained net buyers of approximately ₹2,374 crore in September, while DIIs recorded net purchases of around ₹18,568 crore.

Strong domestic institutional participation has emerged as an important stabilising factor for Indian equities. However, continued foreign selling could limit the market’s upside in the near term.

Investors will now closely watch upcoming US inflation data, which could influence expectations around global monetary policy and determine the direction of international markets.