Indian equities remained under pressure this week, with the Nifty 50 extending its losing streak to seven weeks—the longest in six years—as elevated crude prices, rising US Treasury yields, geopolitical uncertainty and accelerating FII outflows kept risk appetite subdued.

The Nifty fell about 0.88% for the week, despite a late rebound as oil prices eased and value buying emerged. Foreign investors remained the key drag, pulling out roughly Rs 18,531 crore so far this month through September 25, even as domestic institutions absorbed the selling with purchases of around Rs 52,617 crore.

Analysts believe crude oil prices, global bond yields, geopolitical developments and FII flows will drive Indian equity markets next week. US economic data and Federal Reserve commentary will be closely watched for cues on interest rates and global liquidity, while domestic industrial data will offer a read on the strength of India’s growth momentum.

Crude oil and geopolitics: Can easing prices offer some relief?

Crude oil is likely to remain a key variable for Indian equities, with elevated prices continuing to weigh on inflation, corporate margins and the domestic macroeconomic environment.

Vinod Nair, Head of Research, Geojit Investments, said investors were closely tracking developments around the US-Iran conflict and prospects for renewed diplomatic engagement, as well as US-China discussions.

"Although crude oil prices ended the week lower, heightened volatility kept inflation concerns elevated, weighing on overall market sentiment. Offsetting this, India's flash PMI estimates for September came in stronger than expected, pointing to resilient activity across manufacturing and services," Nair said.

He added that rising US yields continued to pressure emerging-market flows, allowing external factors to outweigh domestic macroeconomic comfort.

Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, said Brent crude near $105-106 a barrel remained too elevated to provide meaningful macroeconomic relief.

"Progress in US-Iran negotiations could help reduce the geopolitical premium in oil prices, while renewed escalation or disruptions to supply could intensify inflationary pressures," Radhakrishnan said.