Despite Indian companies delivering June-quarter earnings above analysts’ expectations, the results did little to lift investor sentiment. (Image Source: PTI) The Nifty 50 remained under pressure through the holiday-shortened trading week, ending with a marginal loss as persistent volatility and global uncertainties weighed on investor sentiment. The benchmark index declined 0.22 per cent for the week and closed below the 23,600 mark. The weekly decline was relatively limited compared with the previous week's steep 2 per cent fall. However, the index swung by more than 500 points during the week, highlighting the cautious mood across Dalal Street. With the latest decline, the Nifty has now posted losses for six consecutive weeks, a pattern last seen during the latter part of the previous year. The pressure on Indian equities was part of a broader trend across Asian markets. Key indices including South Korea's Kospi, Japan's Nikkei 225 and Hong Kong's Hang Seng experienced significant fluctuations during the week. Their relatively higher exposure to artificial intelligence-related stocks provided some support and helped contain losses in these markets. Globally, equities continue to contend with geopolitical and monetary-policy concerns. Tensions in the Middle East have kept crude oil prices elevated, while concerns over inflation have influenced the policy stance of major central banks. The Bank of Japan raised interest rates to their highest level in 31 years and indicated that further increases in borrowing costs could follow. The US Federal Reserve also delivered a 25-basis-point rate increase and signalled that monetary conditions could become tighter. Oil prices have shown signs of easing recently, although they remain elevated. This remains particularly important for India because the country imports more than 80 per cent of its crude oil requirements. A prolonged period of expensive crude could add pressure to India's external balances and inflation outlook, creating another challenge for domestic equities. Meanwhile, strong June-quarter earnings from Indian companies have not been enough to improve market sentiment. Foreign investors have continued to look for opportunities in other Asian markets, where greater exposure to the artificial intelligence theme has supported investor interest. On the US front, the House of Representatives passed legislation on Wednesday that would give President Donald Trump broad powers to impose sanctions on Russia and tariffs of up to 100 per cent on countries purchasing Russian oil and gas. The legislation was subsequently sent to Trump for his consideration. Vinod Nair, Head of Research at Geojit Investments Limited, said upcoming domestic credit growth and PMI data will offer clues about the health of economic activity. He added that US initial jobless claims and comments from Federal Reserve officials could influence expectations around interest rates and global liquidity. Nair said geopolitical uncertainty and the absence of a meaningful revival in foreign flows remain important factors for the market's recovery. He said investors would therefore be prudent to remain selective, anchoring positions in businesses with visible earnings, resilient balance sheets, and valuations that leave an adequate margin of safety. Get Latest News live on Times Now along with Breaking News and Top Headlines from Business, Companies and around the world. She is working as a Chief Copy Editor at Times Now’s Business Desk, where she covers key developments in the stock market, Indian corporates across se... View More