Weekly Review: Markets crack under global strain, IT rout and FII exodus drag indices lower
Indian equity markets endured a volatile and distinctly negative week from April 20 to 24, 2026, as fragile early stability gave way to sustained selling pressure amid weak global cues, disappointing earnings signals and persistent foreign fund outflows.
Trading began on a subdued note on April 20, with benchmark indices moving in a narrow range as investors balanced mixed global signals against domestic factors. The Sensex hovered around the 78,500 mark while the Nifty 50 held above 24,300, reflecting cautious optimism but little conviction. This tentative stability, however, quickly eroded as the week progressed, with sentiment turning increasingly risk-averse.
A key overhang through the week was relentless selling by foreign institutional investors, which weighed heavily on market breadth and momentum. The outflows coincided with a firming US dollar and rising bond yields globally, prompting capital rotation away from emerging markets, including India. At the same time, the rupee remained under pressure, further dampening investor confidence.
"The markets exhibited a mixed performance during the week, ultimately closing on a weaker note, as an initial recovery attempt lost momentum amid resurfacing geopolitical tensions between the US and Iran and continued disruptions in the Strait of Hormuz. While early signs of stabilization emerged on expectations of de-escalation and selective buying interest, indices encountered selling pressure at higher levels, reflecting a cautious undertone," said Ponmudi R, Chief Executive Officer at Enrich Money, a SEBI – registered online trading and wealth tech firm.
According to him, the price action remained volatile, with intermittent dip-buying observed. However, he added, the absence of strong follow-through limited the prospects of a sustained breakout, and overall the broader trend remained under pressure, with supply emerging at elevated levels and capping upside momentum.
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