High oil prices and weak IT forecasts drag Indian shares to weekly losses
- Nifty 50 fell 1.14% to 23,897.95, and the BSE Sensex shed 1.27% to 76,681.29
Indian shares fell on Friday, posting weekly losses as Middle East tension-linked higher oil prices and a slump in IT stocks after weak forecasts from Infosys and HCLTech dented sentiment.
The Nifty 50 fell 1.14% to 23,897.95, and the BSE Sensex shed 1.27% to 76,681.29.
The benchmark indexes lost 1.9% and 2.3% respectively this week, after two weeks of gains.
Iran displayed its grip over the Strait of Hormuz with a video of its commandos storming a cargo ship following the collapse of peace negotiations and U.S. President Donald Trump’s indefinite extension of the ceasefire.
Brent crude hovered around $107 a barrel.
“The rally in the last two weeks, driven by hopes of progress in U.S.-Iran talks, suggests some buying support, but sentiment will stay subdued and markets sluggish as long as crude remains above $100 a barrel,” said Aishvarya Dadheech, founder and chief investment officer at Fident Asset Management.
Higher crude prices hurt India by stoking inflation, swelling the import bill, and weighing on growth and corporate earnings, factors HSBC and J.P.Morgan cited in downgrading Indian equities this week.
Eleven of the 16 major sectors logged weekly losses. The broader small-caps were little-changed while mid-caps fell 0.9%.
The IT index slid 5.3% on the day and 10.3% for the week. HCLTech and Infosys logged weekly losses of 16.6% and 12.4% on their weak fiscal 2027 revenue forecasts, due to macro uncertainty and subdued client spending.
IT index constituents lost over $26 billion in market value this week.
“Muted earnings and cautious commentary from IT companies are reinforcing concerns that AI-driven deflationary pressure on revenues could be significant,” said Dadheech.
Bucking the broader weakness, consumer heavyweight Nestle India jumped 10.6% this week, after posting a sharp rise in quarterly profit on strong demand.
Index heavyweight Reliance Industries fell 2.7% this week ahead of its quarterly results due after market close on Friday.
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