FX.co ★ Sensex Suffers 4th Day of Losses, Posts Weekly Decline

India’s BSE Sensex extended its decline on Thursday, closing 0.8% lower at 71,909.7 — its weakest finish since March and the fourth consecutive session of losses. Persistent foreign investor outflows and rising crude oil prices continued to weigh on sentiment.

Uncertainty surrounding a diplomatic resolution to the Middle East conflict has intensified concerns about sustained inflationary pressures and the prospect of higher-for-longer interest rates. Adding to the cautious mood, investors remained on edge ahead of the Reserve Bank of India’s policy decision scheduled for October 7.

All major sectors ended in the red, with the exception of technology shares and a few banking stocks, which bucked the broader downtrend. Among the biggest losers were Maruti (-4.6%), M&M (-3.3%), Tata Steel (-3%), Adani Ports (-2.7%), ITC (-2.6%), and Power Grid (-2.2%). On the upside, Infosys (+4%), TCS (+1.4%), HCL Tech (+1.4%), and HDFC Bank (+1.4%) posted solid gains.

Over the week, the Sensex shed roughly 2.7%. The Indian stock market will remain closed on Friday, October 2, in observance of Mahatma Gandhi Jayanti.