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Sensex Falls 0.65% as Oil and US-Iran Risks Weigh on Markets

By Markets Desk · 2026-09-20 · 1 min read
A silhouette of a city skyline at dusk with a calm horizon.
Illustration: Tradingbird

Indian equities closed lower this week with foreign investors shifting to net buying. Key drivers for the coming period include diplomatic updates from Washington and Tehran.

The Sensex declined 0.65 per cent to close at 74,294.46 this week. The Nifty index fell 0.22 per cent to end at 23,346.40. Midcap and smallcap segments remained largely flat after a volatile period.

Market sentiment was pressured by elevated crude oil prices and rising global bond yields. Investors remain sensitive to US-Iran conflict developments. US tariff moves and foreign fund flows are also key variables.

Diplomatic risks drive energy prices

Any progress in US-Iran negotiations will impact crude oil costs. Changes in energy prices affect inflation and economic growth. Global risk sentiment and equity markets react to diplomatic updates.

The US House approved a bill targeting Russian energy buyers. It allows tariffs of up to 100 per cent on importing nations. India and China face potential implications for trade and energy flows.

Institutional flows show buying interest

Foreign institutional investors turned net buyers on September 18. They purchased shares worth 599.54 crore rupees more than they sold. Domestic institutional investors also added to their positions.

Domestic funds recorded net purchases of 1,019.69 crore rupees. The rupee-dollar exchange rate adds another layer of volatility. Traders watch these flows for signs of sustained demand.

Weekly performance reflects macro caution

The truncated trading week ended on a weak note. Higher energy costs weighed on investor confidence. Concerns over the inflationary impact of rising fuel prices persisted. Economic growth potential remains a focus for analysts.

GN auto markets/indices: stock index data confirms the downward trend. Broader indices showed resilience despite the broader decline. The market awaits clear signals on external risks.

Based on reporting by Chicago, compiled by the Tradingbird desk.

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