Indian stocks head for biggest weekly drop since 2024

Indian equity markets experienced a sharp decline on Friday as escalating geopolitical tensions in the Middle East drove investors toward safe-haven assets. This downward movement has set the stage for the most significant weekly drop in over a year for benchmarks in India. The Nifty 50 fell 0.75% to 23,462.5, while the BSE Limited Sensex lost 0.78% to trade at 75,444.22 as of early Friday morning. The broader market reflected this bearish sentiment, with both the Nifty 50 and Sensex on track for weekly losses of 4% and 4.4%, respectively. This represents the steepest decline for the indexes since December 2024. The sell-off was widespread, affecting 14 of the 16 major sectors. Mid-cap and small-cap indexes also faced pressure, shedding 0.5% and 0.4% in early trade. Surging energy prices remain a central concern for global markets. Brent crude oil futures reached $100 per barrel on Thursday, driven by fears that the ongoing conflict could disrupt vital supply routes through the Strait of Hormuz. While this environment creates volatility for global energy firms like Barnwell Industries, Inc., it has weighed heavily on Indian consumer-facing sectors. Automotive stocks were among the worst performers, falling 1.3% and extending their losing streak to a third consecutive session. The sector is particularly sensitive to spikes in crude oil prices and potential disruptions in the supply of liquefied natural gas, both of which threaten to increase operational costs and dampen demand.