Indian benchmark equity indices ended lower on Friday as continued geopolitical tensions in the Middle East and elevated crude oil prices kept investors cautious.
The BSE Sensex fell 70.71 points, or 0.09%, to close at 78,009.25, while the NSE Nifty 50 declined 29.85 points, or 0.12%, to end at 24,366.
Geopolitical tensions weigh on sentiment
- Investor sentiment remained cautious amid continuing tensions involving the United States and Iran.
- Markets are closely watching developments in the Middle East because any disruption to oil supplies could push global crude prices higher and increase economic pressure on oil importing countries such as India.
Crude oil remains a major concern
- Brent crude moved to around $87 per barrel, raising concerns about India’s import bill and inflation.
- Higher crude prices can put pressure on the Indian rupee, increase fuel and transportation costs and potentially widen India’s trade deficit.
Broad-based selling
- Selling was seen across several major sectors.
- Financial stocks declined around 1%, while metal stocks fell about 1.9%. Auto and IT stocks also remained under pressure.
- The broader market was mixed, with mid cap stocks gaining around 0.5%, while small cap stocks declined about 0.7%.
Tata Motors among major losers
- Tata Motors was among the biggest losers on the Nifty 50, falling around 4.3% after the company reported a sharp decline in quarterly profit.
- LG Electronics India, meanwhile, gained around 9.6% following strong quarterly results and a positive revenue outlook.
Reliance Industries falls
Reliance Industries declined around 1.9% during the session. The stock was also affected by a reduction in its MSCI index weight.
What investors will watch next
Markets are expected to remain sensitive to:
- Middle East geopolitical developments
- Crude oil prices
- Foreign investor flows
- Corporate earnings
- The movement of the Indian rupee
- Upcoming domestic and global economic data
