Benchmark stock market indices ended lower on Friday as rising crude oil prices, a record low rupee and renewed inflation worries kept investors cautious.
The benchmark BSE fell 160.73 points, or 0.21%, to close at 75,237.99, while the NSE Nifty50 slipped 46.10 points, or 0.19%, to settle at 23,643.50.
Vinod Nair, Head of Research, Geojit Investments Limited, said investors turned cautious after the recent relief rally as rising bond yields, rupee weakness and
“Favourable valuations and a solid Q4 earnings print are cushioning the downside. Focus has shifted to potential fiscal and monetary measures to defend the rupee and stabilise the Balance of Payment,” he said.
Nair added that global markets were also facing pressure as rising bond yields paused the AI-led rally that had supported equities in recent months.
Investor sentiment remained under pressure as Brent crude prices surged above USD 109 per barrel amid continuing tensions in West Asia and uncertainty around the , a key global oil shipping route.
WTI crude was trading at USD 104.85 per barrel, up 3.64%, while Brent crude climbed 3.13% to USD 109.03 per barrel.
The Indian rupee also weakened sharply and The currency fell 0.2% against the US dollar to 95.9650.
The rupee’s weakness added to concerns because a weaker currency increases the cost of imports for India, which imports nearly 85% of its oil needs.
Markets also remained cautious after petrol and diesel prices were raised by Rs 3 per litre earlier in the day, reviving fears around inflation and household costs.
Among sectoral indices, Nifty IT gained 1.30%, while FMCG stocks rose 0.54% and pharma stocks added 0.34%.
However, metals, PSU banks and realty stocks remained under pressure. Nifty Metal fell 1.93%, Nifty PSU Bank declined 1.80% and Nifty Realty slipped 1.79%.
Broader markets also ended weak, with the Nifty Midcap100 falling 0.45% and the Nifty Smallcap100 losing 0.61%.
On the Sensex pack, Infosys rose 2.08%, while Tech Mahindra gained 2.04% and Power Grid added 1.34%.
Tata Steel dropped 1.97%, Eternal declined 1.93%, Reliance Industries fell 1.87% and Mahindra & Mahindra slipped 1.56%.
Vinod Nair said the market’s near-term direction will largely depend on geopolitical developments, especially any progress related to reopening the Strait of Hormuz and the outcome of the Trump-Xi meeting.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)