With no immediate end in sight to the war in West Asia, pressure on India’s financial markets intensified on Friday. The dollar climbed to a record ₹92.47 against the rupee, marking the weakest level ever for the Indian currency.
The slide comes as global crude oil prices surged past $100 per barrel, raising concerns about India’s import bill and inflation outlook. Rising geopolitical tensions and higher energy costs have further rattled investor confidence.
Foreign institutional investors (FIIs) have been steadily pulling money out of Indian equities. In just the first two weeks of the month, overseas investors have already withdrawn nearly ₹52,000 crore.
The sustained outflow has added to the downward pressure on Indian equities, amplifying volatility in the market.
Sensex, Nifty slide sharply; investors lose over ₹10 lakh crore
Dalal Street witnessed another turbulent trading session on Friday. Both the Sensex and Nifty50 dropped around 2%, wiping out more than ₹10 lakh crore in investor wealth in a single day.
The broader impact has been even more severe over the week. Market data indicates that nearly ₹20 lakh crore in market capitalisation has evaporated from the Mumbai stock market during the five trading sessions.
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Over the same period, the Sensex has plunged close to 4,000 points, while the Nifty has slipped by more than 1,000 points. The rupee has also weakened by about 1.54% amid the escalating global tensions.
Analysts see limited near-term relief
Market experts say the combination of surging crude prices, geopolitical uncertainty, and sustained foreign fund outflows is creating a challenging environment for equities.
At present, analysts are cautious about predicting when stability might return. Many believe the market could remain volatile until global geopolitical tensions ease and oil prices cool.
Despite the sharp fall, some market watchers believe the downturn could create opportunities for long-term investors.
According to them, nearly 85% of listed stocks are currently trading near their one-year lows. Investors willing to take calculated risks may find attractive entry points, especially if global tensions begin to ease and markets recover.
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Bearish view: Markets may fall further
Not everyone shares this optimism. Some analysts warn that the market may still have room to fall.
After Friday’s decline, the Nifty50 has slipped more than 10% from its recent peak of 25,885, officially entering the correction zone. Combined with profit booking and persistent foreign fund outflows, the market could face additional short-term pressure.
Based on current fundamentals, some experts estimate that the Nifty could slide further toward the 22,700–22,800 range. For short-term traders, analysts caution that betting on the market at this stage may prove risky until clearer signs of stability emerge.
