Indian shares end week lower as higher crude tempers risk appetite

India's stock markets saw a decline this week, reversing two consecutive weekly gains, as geopolitical tensions and high crude oil prices dampened investor confidence. The Nifty 50 fell to 24,366 and the BSE Sensex dropped to 78,009.25. Brent crude prices rose 4.6% to $87 per barrel due to stalled Middle East peace talks between the U.S. and Iran, which had feared the conflict would escalate further.

The U.S. announced it could maintain a naval blockade of Iran indefinitely and increase economic pressure on Tehran. "As long as the macroeconomic concerns arising from higher crude oil prices persist, we are unlikely to see a unidirectional move in the market," said Pankaj Pandey, head of retail research at ICICI Securities. The quarterly earnings season concluded, with most major sectors beating expectations.

However, most sectors ended the week lower, with mid-caps gaining 0.5% and small-caps falling 0.7%. Financials suffered the most significant losses at 1%, while metals led the decline with a 1.9% drop. Reliance Industries, an oil-to-telecom conglomerate, fell 1.9%, partly due to MSCI's decision to reduce its weight in the index.

Unlike other Asian markets, which saw a strong week, Indian markets ended the week weaker. Tata Motors Passenger Vehicles, a heavy-weight stock, saw a 4.3% drop after its quarterly profit declined by about 80% due to increased costs. LG Electronics IndiaL, on the other hand, jumped 9.6% after reporting strong quarterly results and confirming its full-year revenue target.